2013 Predictions on Financial Markets (If The World Does Not End Tomorrow)

Others Predictions

There are some interesting predictions I have seen that are worth mentioning.

First, the one for its entertainment value goes to Saxo Bank’s annual "Saxo Bank 10 Outrageous Predictions for 2013"

Second, is John Mauldin’s "We’ve Had A Good Few Years, But It’s Now Time To Prepare For A Huge Drop In Earnings" for its sensible approach.

My Predictions

Many asks for my longer term view going into 2013.

I do not usually do that because I use January as my yardstick to project price levels and directions for the year. So it is quite difficult for me to dish out useful projections this point in time. Since it is good publicity for the site, I will do it for the sake of entertainment only.

Here we go, my predictions for the year 2013:

US Stock Market Will Top Out In First Half Of 2013 If The Top Is Not Already In Place

My cycle work suggests a multiple year market top is due from now to first half of 2013. The US stock market will enter a cyclical decline phase for several years. Somehow it agrees with the article mentioned above (the one by John Mauldin) which uses a completely different approach from mine.

World Stock Markets Going Into Decline for Several Years

As US stock market going south, the rest of the stock markets will go down with it.

Collapse Of Japan Economy And Its Financial System

The redemption of their government bond has already happened. Japanese government bonds have always been supported mainly by their people, especially their older generation. There is no wealth nor cash flow from the younger generations. So net outflow of money for the government when the older generation is cashing out their bonds to survive.

The only route Japanese government can do now is to have Bank of Japan buying all their new issues, just like what the Fed is doing for the US government.

Japan should be one of the first countries forced to reset their financial system.

European Union No More

The people do not want the union any more. It is already over.

Think of it as an ugly divorce in progress.

Acceleration of Faster And Wilder Swings Across All Markets Making It Extremely Difficult To Trade

When structural collapses happening here and there, essentially everywhere, we get many market shocks. So expect very fast and wild price swings in all markets. Market timing and straight money management becoming the most important tools for years to come.

In summary, my long term idea for year 2013 is to short stock markets worldwide, and eyes on short term crazy swing opportunities in forex.

Feel free to submitting your predictions in the comment section!

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