Predictions for 2007

Increase in energy prices will cut into corporate earnings as well as consumer spending. Inflation will pick up due to higher energy prices but the market will not drop a lot. The DOW will not go down to 5,000 as some predict. It will drop and the NASDAQ will drop but this is a correction due to the fact that it was too pricey. Real estate will continue to sell off and higher interest rates will cause less would be buyers to take the plunge.

Democrats will suggest relief for the poor as soaring energy costs create hardship. The Iraq war continues to be a drain on the economy.

The second quarter of 2007 sees weaker corporate earnings and a declining dow.

Tighter supplies of petroleum products due to resource depletion and trouble in the Middle East will convince many automobile buyers to invest in fuel efficient transportation such as 200mpg scooters that are super cheap, low end microcars like the Yaris, and of course the pricey hybrids.

You will see more grown men on bikes than before. People spend less.