I Have a Dream

Of course that's Martin Luther King's famous speech line. I'm borrowing it today to post my "dream" about where Ms. Market will take us this year. Will she dance on that tables & party, or dump us?

Stocks (S&P 500): high - 1500, low 1200, close 1500.

Bonds: (US 10 year yield): high 4.5%, low 3.3%, close 4.5%

TIPs (the ETF): high 108, low 104, close 104

Gold: high 1500, low 1200, close 1500

Muni bonds: solid A-AA yields rise to 5.5%

From where we are now in these asset classes, the "buy low, sell high" and "sell high, buy low" tactics will pay off well.

Timing: Ms. Market will dance and party a bit, then take a break, then hit the dance floors again.

Hedge funds will have a poor year as the commodity trades will sour, providing little upside and much pain from drops and sideways action. Favorites like AAPL will be sideways. Winnings will be boring stocks like those in the DJIA - big cap blue chips. Big banks will sputter as regulations grind profits away.

Krypto anticipates a fine year and is drooling over those dog biscuits.

Bman will keep riding this bull elephant, but pick fruit off the trees as he passes good trades. The ending waterhole is not yet in sight.

Word of the Day

"Progenerate" - verb [$1000] Obsolete, rare; a T. S. Eliot word
Progenerate means to beget, propagate, procreate.
Sentence: After due exercise of my little grey cells towards the likely path for the various major asset classes for 2011, Bunkerman today progenerated the outcomes that he now believes the near future will bring. Will be a hero or a goat? Time will tell. The future is not determined, but is (mostly) controlled by men riding along the waves of our world in time and space.