Where To Invest In The Next 3 Years

Today I’ve asked my friend and veteran trader Henry Brookins of Stocklooker.com to do some macro analysis in this guest post.

Short-term: 

We are near another short-term market top, but I am not expecting a “collapse” when the markets rest

Longer-term:

It does not matter who is elected President, the stock market and economy will be stuck in “sideways mode” for another 7 years. However, the markets should “bottom” during the next 2-3 years.

The bankers will likely allow the markets to fall a bit, then I expect choppiness through summer, but then we will likely see a nice rally to boost them again in time for the November elections.

War is coming –  it has occurred after almost every single depression – 1930’s (WW-II), 1970’s (Vietnam), 2000’s.  I am fully expecting a war on someone – and right now it looks like we will make Iran the next target – it’s good for business…..at least the Bankers think so.

Housing:

Expecting another 20-30% down depending on the area, and a bottom in the next 2-3 years. Save some cash.

Europe – it won’t be allowed to go into complete chaos. The U.S. (a.k.a American taxpayer) will print money and help them stay just above the abyss. However, I expect a 10 nation group – which means many will fall out.

Where to invest the next 3 years:

Agriculture – arable land, agricultural chemicals, commodities, railroads, and save money for real estate and watch for deals; blue chip companies that have tons of cash and little debt and have been around a while (to include Oil companies) – and just average down as the market slides again.

I am also speculating in small stocks with large daily trading volumes, because I believe these will be “less manipulated” by the computers and Bankers. Right now I am looking at semiconductors and biotechnology, watching solar companies and coal stocks for a bottom.

Good news:  If we are going to be around in 20 years+ – our house prices should recover, and stocks will be early in a 40-year bull market run. Buy and hold will return by 2020ish.

You Can Find Out More About Henry Brookins At Stocklooker.com

(Note: If you are new to my blog, I post about all sorts of things.  Sometimes it involves something extremely personal, like creating a 30K baby or my Monster Trades.  Other times it deals with hot ex-porn stars who trade stocks.  And sometimes it’s about how to avoid “suicide”.  But a good place to start is The Best of bclund.  If you like what you read, please tell a friend.  If you don’t, please tell two friends.)

 

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2 Responses

  1. Pingback: A Potentially Bullish Long Term Development | TheArmoTrader

  2. How much is the retirement of the Boomers contributing to the long term decline that we have seen for the last decade? They must be taking 401(k) distributions in significant amounts and that has to be causing prices to slide.

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