Profit Confidential Big Opportunity for Investors from Stock in 2011
The year 2011 could be a very good year for stocks (if we don’t get any major shocks to the system like a new war or a country default, for example). Most big companies have already reported that business is getting better and their pricing power is improving. We have a very accommodative monetary policy and the outlook for the dollar is mute (which helps exports). We also have price inflation, which helps corporations quickly ramp up earnings.
Almost one in four American homes is underwater—their mortgage is more than the value of the home. There have been several reports issued by various investment houses and research companies that predict that U.S. housing prices will fall next year again. Depending on which report you read, the forecasts vary from another five percent to 11% drop in the value of U.S. homes in 2011.
Just be patient, follow the stock, and wait for weakness to buy. For China, a country that has been around for thousands of years, patience has been a critical trait.