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Thomas Tan’s Predictions for 2008 are Quite Accurate
This article was found from Seeking Alpha.
Thomas Tan, a 15-year market veteran decided to follow a hedge fund manager’s “10 predictions for the year” and wrote this article for Seeking Alpha. He speculates about 10 things to happen in 2008 and he is quite accurate. Here are some of the highlights:
“The price of gold will reach quadruple-digits in U.S. dollars ($1000) for the 1st time in human history. Gold has entered the 2nd phase of its uptrend, and will have more explosive up movements, and become more volatile. We should see $50+/- intraday movement in 2008. But this gold bull market has a long way to go beyond 2008.“
“Energy prices will continue to rise. We should finally see oil hit triple-digits ($100 and more), and a decent recovery of the natural gas market with inventory level declining. Against popular opinion, higher oil prices will neither reduce global demand, nor increase global supply.”
“Citigroup (C) will drop into the teens (below $20), and there is more bad news to come in the banking industry. Less than half of the subprime write-downs were announced in 2007, with the other half still to come. The OTC derivative market is full of land miners, and like steroids in professional baseball, we still don’t know all of the ramifications, or situation of each player (bank). We know many of them are having problems and will hear more explosive news in 2008.“
“After a temporary rebound, the U.S.dollar will continue its downtrend, as an inverse mirror image of gold. The U.S. dollar will lose another 10% of its value, and the U.S. dollar index will hit 70 sometime during 2008.”
