RSS Feed2010 - A Look Ahead. Some Resolutions and Predictions.
Posted by Senan
Happy and prosperous new year to all of you who stumble across this blog. The website is getting a major makeover the the coming weeks so check back when you have a chance and let me know what you think. Below are some thoughts on 2010. Hope you enjoy...
My 2010 Resolutions
- Stay out of personal debt. This means clearing down my credit card every month; need a new car this year so must save for this rather than take out loan or other finance; curb discretionary spending.
- Keep my job. We're in a bad recession, make no mistake. The key to survival will be the keep earning.
- Save for rainy day. I have a couple of investment products maturing in the next couple of years, I could cash these in early in an emergency. However, in order to avoid this situation (and the penalties that would be incurred), I must somehow keep drip feeding into a savings account 'just in case'.
- Invest the leftovers. I don't think there will be much spare cash floating about, but whatever is must be invested wisely. With current savings rates on the floor I will probably be looking at high yielding defensive equities such as Vodafone, Aviva, Altria, and Exelon, or more risky high yielding small-caps such as Greencore and Morgan-Sindall.
2010 Predictions (Bit of Fun)
- ECB rate to stay at 1% until 2011. Despite huge fiscal stimulus, money is still thin on the ground. Business groups such as ISME still complain of a lack of credit facility from banks. Also, inflation still seems unlikely in the short-term given employment statistics and spending trends.
- Irish house prices to stay flat. House prices in the UK have risen year-on-year; this is attributed mainly to a supply squeeze. A similar situation could occur here because building completions are way down. First-time-buyers may be tempted back into the market by the current low prices and low interest rates (if they can get a loan). Fingers crossed.
- Ireland to benefit from U.S. and U.K. emerging from recession. Luckily for us, our largest trading partners (particularly the U.S.) looks like having weathered the initial economic storm relatively quickly. A negative tipping point could come though when all the bailouts have to be paid for (presumably through increased taxes).
- Gold stays high. Gold to remain inflated above $1100 mark as fears remain and investors still shy away from dollar investments.
- Another market 'correction' (W shaped recovery). Just as the doom was over done 12 months ago, the scale of the market bounce since March defies logic. So I'm thinking the ISEQ will hit 2750 again and the FTSE will hit 4900 again, before regaining stability.
- World Cup. Thierry Henry to handle the ball into his own net to 'hand' World Cup victory in South Africa to Algeria!
- Government. Brian Lenihan to recover from illness, leave Fianna Fail, and lead a rainbow coalition to power. His deputy being Eamon Ryan! A new ministerial position to be created: The Minister For Cheering People Up; this will obviously be headed by George Lee.
- You. Have you any 2010 predictions you'd like to share? If so let us know.
Above all else, I hope you get some element satisfaction from this website. Be it on an educational level, or for entertainment, or
mental stimulation, ...or just somewhere to pass 5 minutes! This spot is an informal look at the world of money, finance,
investing, busines, politics, etc. etc.
