This past year, 2012, was an eventful year. We had another Olympics, a U.S. presidential election, the warmest year on record, and lived through the Mayan apocalypse. However, many things did not occur that many of the trend seers predicted, especially dramatic events that made the boldest predictions.
As we enter 2013, time itself seems to be speeding up or condensing to make the potential for dramatic events more likely. Tipping points appear to have been breached on many fronts, and what waits on the other side is difficult to know.
But let’s break out the crystal ball here and make some bold predictions for 2013.
These predictions weren’t acquired by some esoteric powers to see the future; rather they’re derived from riding the current wave of information and guessing where that flow may lead. They may seem bold to some, while the most aware readers may recognize them as foregone conclusions.
So without further ado, here are our top 10 predictions for 2013:
1. Stock market decline: Many economic forecasters have been predicting a stock market crash every year since the financial crisis of 2008. Yet, it has remained strong and even hit a 3-year high in September, 2012. There are many false reasons for this strength that don’t have to do with real economic growth; devalued dollars, cheap money for Wall Street banks, corporations hoarding cash and investments, etc. It’s a false bull market. That is why we feel comfortable predicting a significant decline in the stock market during 2013.
The real economy has been papered over for decades, but the numbers in the false economycan no longer dam the wave of reality. Endless quantitative easing, a quadrillion in world derivatives, over-extended personal debt, lowest ever percentage of the population working, and increased social burden of record food stamps and other programs will finally burst the dam in 2013.
The Baltic Dry index, which is believed to be the best indicator of our consumer economy,suffered a dramatic loss in December. Some say a new recession is already here and the stock market will soon reflect that with a crash in 2013. Look for the Dow Jones to dip below the 10K mark (around 30% or more) next year.
2. Precious metals rise over 50%: Using the same data points as the previous prediction, we predict gold and silver to rise at least 50%.
As the mass exodus from the stock market and other paper investments takes place, individual and institutional investors will start a new gold rush. Indeed, this is already happening.