Friday, December 29, 2017

2018 Predictions: It's Going to be an Even Better Year than 2017!

Well its that time of year again. I will do a slate of predictions and see if they come true at the end of 2018. 

Politics

1. The Dems will win a few seats in the midterms but it won't be a blue wave like they think. The Senate will be split 50/50 with Pence being the swing vote. There is an actual call for bipartisanship but only a few things get done.

2. DACA gets done within a larger fight for immigration reform. It is mostly used as a bargaining chip to get the wall build. Trump settles for a partial win with an electronic wall instead of an actual physical wall. He calls it the "greatest wall ever built." The Chinese scoff.

3. The infrastructure bill gets passed but it is far short of the $1 trillion dollars that was called for in the Trump campaign. The GOP cannot come out against it as deficit hawks after a $1.5 trillion dollar tax cut.

4. Sexual allegations sweep through Washington and claims a number of high profile Congress-critters. However, there is a backlash as the accused go on the offensive asking for their due process rights. Only a handful actual resign. The sexual allegations move to the sports world as a new wave of revulsion grips America. 

5. Trumps tweets become less important as America enjoys the prosperity that the tax cuts bring in. Outrage turns to ephemera as things like Prince Harry's wedding overshadows Trump hate. Colbert and other Trump-haters ratings dip.   

World

1. There are talks between North Korea and the US brokered by Dennis Rodman of all people. There is a "Nixon goes to China" moment as Trump and Kim meet in Beijing. A deal is struck as North Korea backs down. There is no hot war in Asia.

2. Saudis and Iran start to move away from a strict interpretation of Islam and start to move toward a rapprochement. They both move to diversify away from oil with Saudi Aramco's IPO being one of the biggest of all time. Mohammad Bin Salman becomes the man of the year.

3. Terror attacks and warfare with the Islamic world starts to slow considerably. The world moves into a more peaceful period.

4. European Countries start to cut taxes to compete with America. This creates a global positive feedback loop that lifts all boats. Economic growth is unheard of since the 50s as capital starts to flow all over the place. This causes an inflation scare that takes the market down in March. However, it recovers and it sees highs it has never seen in decades.

5. Bitcoin and other crypto-currencies crash as everyone jams the exits at the same time. This causes another market pullback but it soon recovers and reaches long term highs again.

Economic Predictions

S&P 500: 3,000         
Dow: 27,000           
NASDAQ: 7,100      
Russell 2000: 1,650   
Bitcoin: $800

Crude Oil: $68           
Gold: $1320              
EUR/Dollar:   $1.10      
10 Year Bond: 2.55     

Sports Predictions:

NFL: Philadelphia Eagles    
NBA: Boston Celtics
MLB: New York Yankees
Premier League: Arsenal
Bundesliga: Bayern Munich
NCAA Football: Georgia Bulldogs
NCAA Basketball: Duke

Top 5 Grossing Movies:

1. Avengers: Infinity War
2. Incredibles 2
3. Deadpool 2
4. Black Panther
5. Fantastic Beasts: The Crimes of Grindelwald




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