Thursday, February 24, 2011


Some of these predictions are based on Vedic astrology.  The astrologers tend to agree on what they predict. obviously there is my own input as well but I am not an astrologer.

2011-2-24 Oil is near $100 a barrel. Mahendra Sharma  predicts $10 a barrel and a significant drop in silver and gold.( like $21) I predict silver will go down to the low $20s and oil will go down to at least as low as $50 a barrel. Why? The unrest in the middle East is actually good news in the long run. The people will be able to choose their own government. vedic astrology has already predicted these protests as well as the protests in America here in Wisconsin. People are standing up for freedom.  Alcheida and the terrorists thrive in places where people are not free. Once these nations are made free then the terrorists will lose some of their teeth-- they will be less of a threat. people just want to get enough food and raise their children and enjoy life. Already most moslems have nothing to do with the terrorists.  The changes that are here are similar to the changes that came when the berlin Wall fell in germany. After that happened the USSR ceased to exist which took a load off our minds here in the West. Once the governments are reformed there will be better times and I think the corruption will lessen which will make the price of oil go down. Also businesses, governments and individuals are tired of being held captive to the high oil prices and whims of greed here and abroad so they are investing in alternative energy and energy saving devices. Even the big companies are getting in on the new investments because they want to make money as well.  Already nuclear power plants are being built and wind and solar plants are going up.

At 2:30 silver dropped from  $33.25 to $31.84 already due to selling of oil contracts. I think the big movers in the markets already know what is coming. No news has come out yet that would indicate a breakthrough in Lybia. the eastern part of Lybya is free from the dictator Quadaffy plus the 3rd largest city.  Millionaires follow charts. Silver RSI was overbought a few days ago--at 70 indicating it went up as far as it could go. there would have to be a really big disaster for it to go any higher. it was at $34 on Monday which was a holiday here in the USA. Billionaires follow astrology! The billionaires tend to lead the way in the markets. They do not reveal where they get their information.

My prediction for Equities: 2011-2-24-3:57pm  Everybody talks about the end of the world in 2012. 2012 will see record highs in the US stock market exchanges. 2011 will also be a good year but some nervousness due to distress in the middle east. I think inflation will subside when oil prices come down and as they come down the economy will pick up and more hiring will occurr. 2011 will be a year of growth and people will go back to work.  No major wars will occurr in 2011 or 2012 but the tyrants trying to hold power in middle eastern countries will fight to hold power.  Saudia Arabia will likely go next but it will not go easy like Egypt.
People will sell safe haven metals as oil goes down and buy stocks.

Real estate:  Real estate prices are still dropping but it may be a good time to buy a house as long as you can pay the mortgage.  Real Estate Equities: Interest rates will be low likely another year. companies like AGNC-American capital Agency make their money on the spread between the federal rate which is I think around $.25% interest and the retail interest rate that banks loan money out at.  Mortgage backed securities are a good buy because the crash of 2008 was caused by this sector so it is undervalued. Companies like AGNC, NLY, and CIM are buying up the securities at bargain rates using stock offerings. AGNC has a dividend of $1.40 per share which comes to about 19% at todays price of the mid to low $29. It closed at $29.27 (2011-2-24) If you want AGNC shares go to or type in AGNC in your brokerage account. AGNC is backed by FNMA (federal govt.) but CIM is not but their leverage is lower to make up for it. There are a lot of insider buys on CIM but they dont seem to do as well as AGNC. To do more research look under REIT stock.  You need to keep in mind higher interest rates may impact the dividend as well as the share price.  Most ratings companies claim AGNC and CIM are undervalues compared to other companies on the stock market. I do believe real estate prices will stabelize in the next year.Recommendation: have some gold or silver to back your real estate stock as an insurance policy.

Long term predictions: The problems between Israel and Moslem states such as Iran are not fixed and China is a problem. China seems to back North Korea. When one religion or nation claims they have a better religion than the rest of the world this is a main ingredient to war. Also what we eat contributes. If we put in our body that which causes suffering and makes us more aggressive then we contribute to war. Also we need to consider the monetary and resources used in our food. Mankind may be on a road to war around 2015 or some other disaster but it will not be the end of the world or life. This risk is why I say your stock portfolio should be insured by gold or silver because even a small war could impact markets through fear. I do think we will find many more scientific discoveries and inventions. In 2012 there will be a spiritual revival for those who want to participate but participation is not putting one religion over others or imposing one religion over the rest of the world.   I do think God may manifest Him or Herself or He or She may be here already here-- see my scriptural quotes. China may well be split into pieces years from now- like after 2015 maybe as late as 2020,  because they are heading in a bad direction. Israel could attack Iran.