First signs of market trends in 2007 from revised GDP data – strong dollar, weak metals, crashing stock market and flat bonds
Peter oberois
Dec. 21, 2006

Revision of the GDP data today and reaction of different investment sectors to that showed the first glimpse of what is coming 2007. The first thing to note is the $4 trillion in global deals fuelled by cheap debt. Belive it or not, value of deals worldwide was 28 per cent higher than at the height of the dotcom boom in 2000. That is significant. Whenever a boom in mergers and acquisition take place, the bust is severe in following years. The cheap debt created stealth hyperinflation woth lower tax in investments. The chema money diluted sense of value. Anything and everything just went up.

The revised lower GDP data sets the trend. The world economies will suffer badly in the next several years. The US economy will fare far better than the rest of the world. The worst hit will be India and China. The US Dollar will strengthen between 2007-2010 like never before as America prospers relative to the rest of the wordl. The stock markets all over the world will collapse. Dow has 76% probability of reaching 4000 before end of 2008. Gold and all metals will stage back into a bear market that will take copper below $1.00 and $400 an ounce in gold. The bond market in US will be flat. In other parts of the world the bond yields will collapse. America will finally take control over its trade deficit and balance of payments.

First signs of market trends in 2007 from revised GDP data – strong dollar, weak metals, crashing stock market and flat bonds
Peter oberois
Dow has 76% probability of reaching 4000 before end of 2008. Gold and all metals will stage back into a bear market that will take copper below $1.00 and $400 an ounce in gold.
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