Investing in 2006 – the point of view of the speculator

Next year looks set to offer some exciting investment opportunities. Alternative fuels, the housing market, inflation, gold, silver and car production will be economic titles for 2006.

The screws continue to tighten with energy

In 2006, oil prices will rise due to increased demand for oil from the world’s fastest growing economy, China. This rise in prices is also due to increased oil supply, which does not meet the increased demand for oil. This will force economies around the world to seriously consider alternative fuels.

These alternative fuels will be primarily Synfuel due to Synfuel’s ability to integrate with existing global infrastructure. This will become the cheapest and most effective method of combating rising energy prices, while being able to reassure conservationists. Although new alternative fuel plants do not have to be launched online this year, steps will be taken to promote Synfuel technology.

While Synfuel solves the problem of continuing oil demand, nuclear energy will alleviate the problem of natural gas power plants. The US Congress will continue to seriously consider the benefits of nuclear energy.

Suffering in the housing market

2006 will set the trend for the housing market over the next few years. Look for the price of an average house in big cities to fall due to higher energy prices, rising unemployment, the outstanding debt of the average American, and more houses for sale than houses for sale. The continued rise in interest rates on federal funds may be the initial impetus for the decline in the value of housing. When the housing market gets into trouble, expect more media coverage from the OJ process, because most people own a home, while if the stock market gets into trouble, most people don’t invest. Congress can be expected to try ineffective – even counterproductive – methods to alleviate the suffering in the housing market.

Bernanke vs. Gold

As Ben Bernanke ascends to the throne of the Federal Reserve, expect Bernanke and the Fed to continue raising interest rates until part of the US economy experiences a catastrophe. Combined with Bernanke’s philosophy of monetary inflation, this will bring a utopia to gold investors and other advocates of healthy money.

Not only is the value of gold moving up against the dollar, gold is moving up against most currencies in the world. As policies for gold and stable money have been neglected around the world and the depreciation of the currency, investors – private and public – are starting to buy solid assets. Therefore, expect the price of gold to continue upwards.

Silver – the icing on the cake

Silver is preparing to be this year’s investment for bedrooms. This is partly due to the fact that silver cannot be bought at a better value. In addition, silver is used faster than it is mined, creating an imbalance in supply and demand that is likely to lead to shortages. World reserves of this precious metal have already declined to their lowest level in decades. Investors who use their money in the silver mining sector should get reasonable returns on their investments.

Driving in 2006

Another big story for 2006 will be the thousands of layoffs of American carmakers. Look for business restructuring, including a strategy to bring cost-effective and economical vehicles to market. Shares of US carmakers will continue to decline in 2006. Serious car investors will look to Japan, especially companies like Toyota, when assessing investment opportunities in cars.

Next year will provide profitable opportunities for speculative investment. The Explosive Speculations bulletin is designed to take advantage of the economic weakness that 2006 is likely to bring. Don’t miss out on valuable information that can help you add this “extra thing” to your investment portfolio.

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