aarc

10 Predictions for the Global Economy

See my last comment on what will happen in the future.

In summary:

- Banking and Finance is going to be the mainstream income generating sector for the US in the next 2 or more decades. The present financial crisis of the west is going to be solved thru rebalancing and the "magic" of accounting since they are only paper assets not hard assets.

- The developing countries are going to allocate more capital into hard assets of industrialization and maintain their leadership in global manufacturing and will start usurping the technological lead from the US if not already done so.

- China, India, Brazil and other developing countries now do have a "new" baby boomer population dwarfing the the baby boomers of the West by the BILLIONS! (or rather more than 1 billion). They are now in their 20's, 30's and 40's while the Western baby boomers are now in their 50's and 60's. Priorities in life change as the population age changes and so thus the economy of the respective countries.

- The billion(s) of young and productive baby boomers from the developing countries will usher the next global boom in consumerism.

The US is going to maintain its global leadership thru politics and the superbanks (JPM, BAC, WFC and Citi).

Health care will be the economic backbone of the USA 30 to 50 years from now.

To see the highest probability scenario for Dow Jones next year. See my comments last Oct and Nov 2008 from the technical point of view (charting) using Elliott Waves analysis.