I shall discuss on the new forecast of 2011 for the Dow jones, and S&P 500 on the blog.After careful reading the chart again, i alter the forecast figures.
Is the middle east going to affect the stock market?
Certainly, what happen to them will affect the market as some of them are oil producing countries. However, for now, oil going above $100/barrel is nothing very surprising. Inflation have set in so much, that oil at this price is still reasonable or shall i say cheap. Which also mean very true to us that our govt giving us growth dividend money, is use to combat the rise of goods price. The higher cost of goods is now for real. So prepare more money if you are going to the hawker center or kopitiam. Bcos all things are going to go more expensive.
However, salary of yours is still the same yar?
Exactly!!! Mean overall you are poorer. Pls do something about it, do not let your money sit in the bank and do nothing. Have 6 months of your expenses in your bank account and use the rest for something else. I kid you not. These inflation is set for real. Perhaps the next crisis for us is hyper inflation due to goods prices or shortage of food.
PLS do something about your savings!!!
SOOOOOO....what the prediction???
Well for the US market, it seems quite promising. Asia market look good too, but afterall it is a follower of the US.
I forecast S&P500 to reach about 1625s to 1630s level by end of the year.
I forecast Dow Jones to reach about 15600s by end of the year. Dow Jones ind will probably hit 14000s level by mid of the year.
Nth is 100%. I may be dead wrong about it.
