2010 - What to expect.

According to Robert Kiyosaki

1. Real estate market will crash again

A 'Mortgage Reset' is simply a mortgage is due for refinancing. In September 2008 when mortgage reset hit $35 billion, there were many default due either to couldn't afford (jobless) or natural way (property value is so much lower than the financing cost). Its impact on Dow is as shown below.
2. The current stock market rally will probably turn into a dead cat bounce.

3. Gold, Silver and Oil - Safe investment in 2010

From Omaha.com

Ron Carson of Carson Wealth Management Group - The economy could remain rocky and could spiral into another recession by mid to late 2010.

Jeff Sharp, a financial adviser at SilverStone Group - Hitting new lows in the stock market is remote. The market is more likely to be about 10% higher by end of 2010 or remain about even.

Roland Manarin of Manarin Investment Counsel Ltd - Market to stay strong at least through 2010.

From Merrill Lynch Asia (Bank Of America) strategist - S&P 500 could soar another 40% by December 2010 before it collapses completely based on a unique comparison with Nikkei 225......

From Marc Faber - Stocks may have another 10% to 20% correction, followed by another rally.

From Robert Prechter - Another crash in 2010 that will bring stocks below 2009's low.


Personally I will assume that Dow is heading for wave 7, 8 and 9 and monitor Dow closely along this hypothesis. The cut-off line is as shown in green below, I will hold only cash once Dow drops below this short term support line in green. Once it breaks the longer term lower resistance line in red, Robert Prechter will start laughing.


And of course I will not forget that the Tiger Year in Chinese Zodiac begins on 4th February 2010. Will this 2010 tiger bring disaster to Bursa Malaysia the way the previous three Tigers did in 1998, 1986 and 1974 ( drops averaging 70%) ?