The global economy muddled along last year with sluggish growth in Europe, Japan and China but the resurgence in the U.S. economy is helping the world stock markets. Of course, it is up to you whether you believe the standalone growth-engine of U.S can continue to power ahead to offset that parts of the slowing growth.
The following forecast does not include the short term turning points or the counter-trend rally. As a trader, you must pay attention to short term and intermediate term trend change or possible turning points to maximise returns.
My 10 predictions for 2015:
1. U.S. economy will power ahead but... The world's largest economy will continue to outperform its peers but it will face a strong headwind towards the last quarter of the year. Euro Zone, Japan and China's economy will continue to struggle
2. Gold will see new lows around 1000-1030. Silver will drop to $12-$13 but a 'generational' opportunity is awaiting those who understand gold and silver. Be patient!, we will see gold reaching $$5000-$10000 and Silver to hit $150-$200 in the new 7 years Cycle starting from 2016
3. USD will extend its up-trend and the end-target is 99-100. EURO will get down to 1.000 on par with USD. USD is in the last phase of up-trend and following that, we may see 'the demise of USD' (devaulation)- the days of USD is numbered!
4. SPX and DOW will continue its run for the 7th year advance. However, we will see 1 time of 10% correction coupled with 3 times of 5% correction along the way. SPX will hit 2500-2600 by the end of 2015. We will see peak at 3200 by 2016 and then they will enter multi-year of decline. 2015 will continue to see Technology stocks doing well as the leading index will continue to climb a lot higher.
5. Oil will continue to drop to $36-$40 as the ultimate bottom
6. Nikkei and SSEC will continue to power ahead strongly led by DOW
7. Commodities will continue its slides but material stocks will start to shine by the later part of the year
8. The Fed will raise rate by September 2015 but that will signal the bottom in gold. Rate increase might impact gold price for a short 3 months only.
9. ASX will seriously under-perform as compared to DOW SPX NIKKEI and SSEC
10. AUDUSD will drop to 73 due to sluggish China's growth and the ongoing strength of USD