Investing in 2006 - A Speculator's Perspective

This coming year looks to offer some exciting investment opportunities. Alternative fuels, the housing market, inflation, gold, silver, and auto manufacturing will be economic headlines for the year 2006.

Screws Continue to Tighten On Energy

2006 will see oil prices rise upwards due to increased oil demand from the world's fastest growing economy, China. This rise in price is also due to increased oil supply falling short of meeting increased oil demand. This will force economies around the globe to seriously consider alternative fuel.

These alternative fuels will mainly be Synfuel because of Synfuel's ability to integrate with the world's existing infrastructure. This will become the cheapest and most efficient method of combating rising energy prices while being able to appease environmentalists. While new alternative fuel plants will not necessarily be brought online this year, steps will be taken to promote Synfuel technology.

While Synfuel solves the problem of continued oil demand, nuclear power will ease the natural gas power plant problem. U.S. Congress will continue to seriously consider the benefits of nuclear power.

Suffering in the Housing Market

2006 will set the trend for the housing market for the next few years. Look for the price of an average house in major cities to drop because of higher energy prices, increased unemployment, outstanding debt of the average American, and more houses for sale than houses being bought. Continued fed rate hikes might be the initial push into housing's decline in value. When the housing market runs into trouble expect more media coverage than the O.J. trial because most people own a home, whereas if the stock market runs into trouble most people don't invest. One can expect congress try ineffective - even counterproductive - methods to ease suffering in the housing market.

Bernanke vs. Gold

With the ascension of Ben Bernanke to the throne of Federal Reserve Chairman, expect Bernanke and The Fed to continue interest rate hikes until a piece of the U.S. economy experiences disaster. Coupled with Bernanke's philosophy of monetary inflation, this will bring utopia for gold investors and other sound money advocates.

Not only is the value of gold moving up against the dollar, gold is moving up against most currencies world-wide. Because gold and sound money policies have been ignored by the world over, and the decline in currency value, investors - private and public alike - are beginning to purchase solid assets. Therefore expect the price of gold to continue in the up direction.

Silver - Icing On the Cake

Silver is gearing up to be this year's sleeper investment. This is due in part because silver could not be purchased at a better value. Also, silver is being used faster than it is being mined creating a supply and demand imbalance that could likely lead to a shortage. World stockpiles of this precious metal have already diminished to a multi-decade low. Investors leveraging their money in the silver mining sector should experience reasonable gains on their investments.

Driving Around In 2006

Another big story for 2006 will be the thousands of layoffs experienced by American auto manufacturers. Look for business restructuring including a strategy of bringing cost effective and fuel-efficient vehicles to market. U.S. auto manufacturers' stock value will continue to decline throughout 2006. Serious automobile investors will look towards Japan, especially companies like Toyota, when evaluating auto investment opportunities.

This coming year will provide profitable speculative investment opportunities. Explosive Speculations Newsletter is designed to capitalize on the economic weakness that 2006 will likely bring. Don't miss out on valuable information that can help bring that "extra something" to your investment portfolio.

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CO-AUTHORED BY: Zach Fross
Explosive Speculations Investment Newsletter is geared towards informing investors about investment opportunities that have a chance to double and triple over the next few years. To find out more about Explosive Speculations please visit http://www.explosivespeculations.com

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