Larry Edelson takes a closer look at the possible forecasts for the economy in 2008. In this issue of Money and Markets, Mr. Edelson examines different countries and what they each can expect to see in 2008.
Jupiter, FL (PRWEB) December 29, 2007 -- Larry Edelson takes a closer look at the possible forecasts for the economy in 2008. Mr. Edelson examines different countries and what they each can expect to see in 2008.
Foreign investors in the Middle East and Asia could use more and more funds from their oil revenues and our trade deficits with those regions to bail out many more U.S. companies and to make strategic long-term investments.
China's sovereign wealth fund, China Investment Corp. (CIC), has already scooped up 9.9% of Morgan Stanley for $5 billion and spent $3 billion for a 10% stake in the Blackstone Group, the largest private equity investment firm in the U.S. CIC has $200 billion at its disposal, with hundreds of billions more on tap, courtesy of Beijing's $1.435 trillion in reserves.
Singapore's Temasek Holdings, which has more than $100 billion in assets, has already bailed out Merrill Lynch with a $5 billion investment.
Abu Dhabi's Investment Authority has bailed out Citigroup with a $7.5 billion, 4.9% stake. ADIA has $875 billion in assets in its coffers. And now, Saudi Arabia is setting up the largest sovereign wealth fund in the world. It's set to capitalize it in early 2008 with a whopping $900 billion.
As natural resource prices surge and the mountain of U.S. debt grows toward the sky, sovereign wealth capital from Russia, Brazil, Venezuela, Norway, Sweden and many other countries will flood into the markets.
And as far as China goes, keep in mind that Beijing is simultaneously opening up other valves and implementing new policies that keep the economy growing. As China's population booms, a massive upgrade to its healthcare system is underway. On top of that, the Chinese government recently approved a $700 billion upgrade to the country's healthcare system in the rural regions.
Much of the same is happening in India, where more millionaires are being created daily than in any other country except China. Consumer spending should keep growing at about a 6% rate, fueling the rocket that is the Indian economy.
"2008 could bring more surprises to the upside in inflation. And realization that inflation is running far above Washington's estimates. Inflation is a self-fulfilling cycle. As prices start to rise and the public perceives prices tomorrow will be higher than today, they start to pay up for goods and assets. That, in turn, leads to yet higher prices, more inflation and more pressure on the dollar. Inflation will most likely be the main economic topic in 2008," Mr. Edelson says.
To read this issue online, please visit:
http://www.moneyandmarkets.com/Issues.aspx?NewsletterEntryId=1313
About Larry Edelson and Money and Markets
With nearly three decades of experience in precious metals and natural resources markets, Larry Edelson has played a pivotal role in training Weiss Research staff and in guiding Weiss Research's customers to prudent investments in the sector. His Real Wealth Report, Gold Trader Hotline and Energy Options Alert provide a continuing education on natural resource investments, with recommendations aiming for both profit and risk management. His team of technical analysts helps enhance the timing of investment recommendations with the aim of continually improving the performance results for investors.
Mr. Edelson is also a regular contributor to the daily e-letter, Money and Markets. Recognized as an expert in precious metals and natural resources, he is often called upon by the media for his investing views. Mr. Edelson has been featured on Bloomberg, Reuters, and CNBC as well as The New York Times, New York Sun, and Marketwatch.com
Mr. Edelson holds a B.A. degree from Columbia University.
Money and Markets (www.moneyandmarkets.com) is a free daily investment newsletter from Dr. Martin Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Weiss Research, Inc. is located in Jupiter, Florida. For more information about our editors, or to set up an interview, please contact Jennifer Moran at 561-627-3300 or visit www.moneyandmarkets.com.
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