Archive for the ‘Uncategorized’ Category

Top 10 Predictions for 2023

Thursday, December 22nd, 2022

I thought that 2022 would be a more normal year – but it hasn’t been. From Russia invading Ukraine, to China once again locking down as the rest of the world reopened, to the overturn of Roe V. Wade, to the unexpected midterm election results, to ….

Black swan events are becoming more common. So, this year, rather than hope for more normal times, I’m going to go with the assumption that the world’s craziness will continue – and make some seemingly outlandish predictions; who knows, some of them might even come true!

Here we go (and as always – this is what I predict will happen – not necessarily what I want to happen):

10 – Donald Trump will not be a candidate for President by the end of 2023. I don’t think he really wants to run – witness his lackluster announcement – and many Republicans seem ready to move on, at least for now, as DeSantis gains momentum. He will also be indicted at least once if not twice in 2023; he thought that running again would shield him from prosecution, but I don’t think that that will be the case. Some undisclosed illness will probably be the reason for dropping out so that he can save face. Once Trump drops out, headlines will be dominated by questions about Biden’s future (I am assuming he announces early in the year that he is running), and whether he will be challenged in the Democratic primaries, or decide to withdraw himself since the Trump threat will be gone.

9 – Kevin McCathy will become Speaker of the House, but will be ousted by the end of the year. I’ve been going back and forth on this one, but I think he ultimately gets it simply because nobody else really wants it, and he seems willing to give up almost anything to get it; in fact, he will have to give up so much to get to 218 that he will effectively be a leader with no power from the start.

8 – There will be no major legislation passed in 2023 (other than related to regulation of Cryptocurrencies), as the Republican-lead House will focus on Hunter Biden and impeaching Mayorkas and perhaps others. It will be the revenge tour for the January 6th Committee and the Trump impeachments. Grid lock and anger in Washington for sure.

7 – Elon Musk will no longer be involved with Twitter on a day-to-day basis by the end of the year. This has been in the news of course this past week as I make these predictions, as he lost his own on-line poll about remaining as CEO. He already seems to be vacillating on his promise to name a new CEO – every day brings a change. I believe that this back and forth will continue for a while, so I decided to leave it in my predictions. He still may own the company (I wouldn’t be surprised either if he sells or it goes bankrupt), and even if he steps away he will never truly give up all control, but I think he will come under increasing scrutiny and pressure from the shareholders of Tesla and he will be forced to name new a CEO eventually, even this person is just ultimately a puppet.

6- Putin will no longer be in power and the war between Russia and Ukraine will end. Again, I’m not exactly sure how this happens, but I think his position has become increasingly untenable. Perhaps an assassination, or perhaps a military coup, or even the likely-Trump route – a medical excuse to save face.

5 – China and Iran will continue to make minor concessions to quell recent uprisings, but these changes will be mostly cosmetic to appease the protesters, and the grips on power by the authoritarian regimes will continue. The Chinese economy will struggle during the first half of the year, as Covid cases and deaths rise, resulting in some new supply chain issues throughout the world. These issues begin to work themselves out in the Fall. North Korea will continue to provoke, but no major breakouts in hostilities will occur. Since China will be consumed with events at home once again, tensions surrounding Taiwan should not escalate.

4 – It will be a much quieter year for European politics, certainly as compared to 2022. There will be no major leadership changes as there were in 2021, although if there is one it will be in Spain. The Mideast overall will be quiet, but there will be increasing tensions within Israel (between the Jewish citizens and the Palestinians) as the new Netanyahu  government will continue to go further right; it has to in order to keep the far right parties in the coalition. I expect riots at some of the holy places in Jerusalem and in the West Bank, and increasing strains with the U.S. – with both the Biden Administration and Jewish groups as the building of settlements will accelerate, and some rights of the Palestinians and LGBTQI+ citizens are threatened.

3 – The U.S. will go into a mild and shallow recession. But inflation will continue to ease, food prices will finally start to come down, and the recession will be very short. The U.S. Federal Reserve will raise interest rates two more times (25 basis points) early in the year, and while there will be hope for an interest rate cut before year-end, this will not come to fruition, as the U.S. Federal Reserve (Fed) will remain determined to keep inflation under control.

2 – While the stock market usually likes political gridlock, as government spending is kept in check, 2023 will be another volatile year for stocks, although not nearly as bad as 2022. Bonds, however, will start to perform better. All of the major stock indices will end the year essentially flat to slightly down. Cryptocurrencies will remain in the headlines, and as mentioned above, some regulation of the industry will be the only significant legislation passed during the year. The overall performance of Cryptos will be negative.

1 – Finally, sports. I am going to go with my heart, hope for another Black Swan event and pick Michigan to beat Georgia to win the college football national championship. The Buffalo Bills will win the Super Bowl. Virginia will win the NCAA basketball tournament. The Boston Celtics will be NBA champs, and the Boston Bruins will win the Stanley Cup. Finally, the Houston Astros will win the World Series.

How Did I Do? Review of my Top 10 Predictions for 2022

Thursday, December 15th, 2022

Time to review how I did with my 2022 predictions (comments in bold). It turned out to be another crazy year in so many ways!

While we were all hoping for a more normal 2021, unfortunately that did not happen. The drama started early in the year – January 6th to be exact – and continued with Omicron and dysfunction on full display in Washington as the year ended.

I am trying to be as optimistic as I can as I look forward to 2022, but I honestly see another year of turmoil ahead. Hopefully, amidst whatever transpires, we can each find some peace and tranquility within ourselves and with loved ones.

Here we go (and as always – this is what I think will happen – not necessarily what I want to happen):

11 – I am adding an 11th prediction because I don’t know if this will happen in 2022 or not – but I wanted to be on the record with my prediction in case it does. Donald Trump will NOT run for re-election. While he will probably extend the drama for as long as he can to maintain his grip over the party, he could surprise us all and announce something before the end of 2022 (he has already said that he will wait until after the midterm elections). This will likely become a 2023 prediction. As always, Mr. Trump was full of surprises. I was wrong (for now ….. wait until my new predictions), and he likely moved up his announcement thinking it would make it more difficult to indict him. That remains to be seen. But the kick-off to the campaign was met with resistance from many Republicans, he lost some credibility when Walker lost the Georgia race, and his legal woes compounded during December.

10 – Speaking of the midterm elections … The Republicans will retake both the House and the Senate. It will be close in the Senate, because it is a very difficult path for the Republicans, but they will emerge with 52 seats. The House will not even be close, and the Democrats will lose more seats than they ever have in a midterm election. The Democrats did surprisingly keep control of the Senate, and actually added a seat, helped by the poor quality of many of the Republican candidates. And the red wave in the House did not materialize after all. It seems that the overturning of Roe v. Wade motivated more Democrats and woman to vote. It was the Republicans to lose, and even though they won a slim majority, getting anything meaningful done will be very difficult.

9 – The primary season leading up to the midterms will be the ugliest yet – within both parties, the extreme factions of each party will pull farther apart. On the Republican side it will be the MAGA wing v. the so-called RINO wing, and on the Democratic side it will be moderates v. liberals. Trump-supported candidates will not do as well as expected and neither Herschel Walker or Dr. Oz will win Senate seats (although Walker might become the party’s candidate). Neither Walker or Oz did win, Trump candidates did poorly overall and there were some contentious primaries. Both parties seem as fractured as ever. On the Republican side, McCarthy is struggling in his attempt to become Speaker of the House, and on the Democratic side, while new, younger leadership has been elected, the progressives remain unhappy with the general direction of the party.

8 – The January 6th commission will continue to be stymied by witnesses who refuse to testify (and delay), but they will release a report before the election, sensing that a Republican majority will disband the committee. There will be some damning evidence presented against former President Trump and some of his allies, but overall reaction will be muted (given the partisan divide); two members of the House will resign because of their roles in the planning. No prosecutions will take place in 2022. A mixed bag here. There were no prosecutions (yet) and no House resignations. The committee was largely ignored by Republicans, and there were some refusals to testify, although some Trump administration officials did testify and provide damning evidence against the former President. I should have said that the committee would rush to get the report out before year-end – not the election – which they have announced that they will. And it now seems that the committee will recommend to the DOJ that some people get indicted (not clear who yet at the time I posted this), but these recommendations are not binding.

7 – Former President Trump will be indicted in NY State for business-related irregularities at the Trump Organization, and perhaps for tax evasion . And speaking of Trump, little or no progress will be made in launching his new media platform (True Social). While Trump himself has not been indicted yet, the business was found guilty of tax fraud. One can argue either way about True Social, but I would argue that it has not become nearly as popular as Trump would have hoped.

6 – The pandemic will become an endemic – it is something that we are just going to have to live with. Annual boosters will become necessary, and by the end of the year one will be developed that will also include the flu so that only one shot per year will be necessary. This should be developed by the fall. Other named mutations will occur, since much of the world remains unvaccinated, but the US will not shut down. (Even if the government tried, many people would not heed it, and I think the government knows that.) Continued lockdowns in some parts of the world, including Europe may continue, but so will protests and eventually the realization that we must live with it will proliferate and the number of  lockdowns will decline. Mostly right here. Annual boosters against new variants seem probable moving forward, but the flu shot remains separate for now. Lockdowns continued in China but were met with unprecedented protests, leading the government to “give in” in December and re-open the economy. We are going to have to live with Covid; disappointing however has been the low percentage of Americans that are getting boosters. 

5 – On the international front, the US will continue to be pressured to impose sanctions on Russia over Ukraine, but will continue to resist and no invasion will take place. Relations with China will remain tense but I don’t see a serious deterioration or any major blow-ups over Taiwan. China will be focused at home and continue to crack down internally as Xi continues to amass more power. The Olympics will be postponed because many athletes will not be able to get there. Talks with Iran on a nuclear deal will continue, but no new deal will be reached. The coalition government in Israel will fall, and Netanyahu will become Prime Minister again. Macron will lose the French election in a shocker, and Boris Johnson will survive a no confidence vote. Another mixed bag. Most of us were wrong about Ukraine, Macron did get re-elected, but in a much closer election than anticipated, and well Boris did not survive. But China is having its own internal problems, so while relations with the US aren’t good, they haven’t changed significantly. I was right about Netanyahu and no Iran deal.

4 – Inflation will remain high throughout the year, another factor that will hurt the democrats in the midterm elections. The Fed will raise interest rates two times during the year, not three as previously announced, as global economic growth will be slower than expected. The supply chain issues will continue to work themselves out and thing should be back to normal on this front by late summer. But with continued worries over Covid, the labor markets will continue to be unstable, with employers (retail, restaurants) continuing to have problems hiring. Mostly right other than the number and magnitude of the interest rate increases. Inflation remains a problem as does hiring, but the supply chain issues have improved dramatically. However, more economists are predicting a recession in 2023 (which rattled the markets in early December before better than expected inflation numbers mid-month led to a rally).

3 – The economy will chug along at a moderate pace, hampered by the labor issues mentioned above. Consumer confidence will be hampered throughout the year by higher prices, but gas prices should come down by mid-year. The hybrid work model will continue to become permanent, and many companies will adopt a flexible model of allowing employees to work from home at least a few days a week. A much smaller Build Back Better Bill will pass, but the bitterness caused by the delay, coupled with the impending elections, will make this the only major piece of legislation passed in 2021. The economy did, and continues to chug along, a smaller version of the Build Back Better Bill did pass, although was given an awful name that will haunt Democrats in 2024! While some companies did adopt more flexible models for employees, I was surprised by the number of companies – including many financial institutions and technology companies – that have now ended any remote work options. 

2 – The word of the year in the stock market will be volatility in light of the ongoing uncertainty caused by Covid variants. But company fundamentals remain strong, as companies have been able to pass costs on to consumers. There will be a 10% correction during the year, perhaps in response to Fed tightening , but this is a normal part of any stock market cycle, and the markets will end up modestly for the year – but less than 5%. Cryptocurrencies will continue to gain in popularity, and they will continue to be extremely volatile, but will end the year higher overall. I was a little too confident here! There was a correction, but much larger than I thought, making 2022 a losing year, and well we all know what happened to Cryptos. But … I was right on the volatility part!

1 – Finally, my Achilles Heal the past few years, sports. Georgia will win the college football national championship, capping off an undefeated year and sadly beating my Wolverines. Predicting who will win the Super Bowl is a tough one, because as of now I see a lot of mediocre teams. But since I have to make a prediction, I am going to go with the Kansas City Chiefs. Baylor will win the NCAA basketball tournament. The Phoenix Suns will be NBA champs, and the Minnesota Wild will win the Stanley Cup. Finally, the Los Angeles Dodgers will reclaim their place as baseball champions. Well – I did get Georgia right! Not much else. Sigh.

Top 10 Predictions for 2022

Tuesday, December 21st, 2021

While we were all hoping for a more normal 2021, unfortunately that did not happen. The drama started early in the year – January 6th to be exact – and continued with Omicron and dysfunction on full display in Washington as the year ended.

I am trying to be as optimistic as I can as I look forward to 2022, but I honestly see another year of turmoil ahead. Hopefully, amidst whatever transpires, we can each find some peace and tranquility within ourselves and with loved ones.

Here we go (and as always – this is what I think will happen – not necessarily what I want to happen):

11 – I am adding an 11th prediction because I don’t know if this will happen in 2022 or not – but I wanted to be on the record with my prediction in case it does. Donald Trump will NOT run for re-election. While he will probably extend the drama for as long as he can to maintain his grip over the party, he could surprise us all and announce something before the end of 2022 (he has already said that he will wait until after the midterm elections). This will likely become a 2023 prediction.

10 – Speaking of the midterm elections … The Republicans will retake both the House and the Senate. It will be close in the Senate, because it is a very difficult path for the Republicans, but they will emerge with 52 seats. The House will not even be close, and the Democrats will lose more seats than they ever have in a midterm election.

9 – The primary season leading up to the midterms will be the ugliest yet – within both parties, the extreme factions of each party will pull farther apart. On the Republican side it will be the MAGA wing v. the so-called RINO wing, and on the Democratic side it will be moderates v. liberals. Trump-supported candidates will not do as well as expected and neither Herschel Walker or Dr. Oz will win Senate seats (although Walker might become the party’s candidate).

8 – The January 6th commission will continue to be stymied by witnesses who refuse to testify (and delay), but they will release a report before the election, sensing that a Republican majority will disband the committee. There will be some damning evidence presented against former President Trump and some of his allies, but overall reaction will be muted (given the partisan divide); two members of the House will resign because of their roles in the planning. No prosecutions will take place in 2022.

7 – Former President Trump will be indicted in NY State for business-related irregularities at the Trump Organization, and perhaps for tax evasion . And speaking of Trump, little or no progress will be made in launching his new media platform (True Social).

6 – The pandemic will become an endemic – it is something that we are just going to have to live with. Annual boosters will become necessary, and by the end of the year one will be developed that will also include the flu so that only one shot per year will be necessary. This should be developed by the fall. Other named mutations will occur, since much of the world remains unvaccinated, but the US will not shut down. (Even if the government tried, many people would not heed it, and I think the government knows that.) Continued lockdowns in some parts of the world, including Europe may continue, but so will protests and eventually the realization that we must live with it will proliferate and the number of  lockdowns will decline.

5 – On the international front, the US will continue to be pressured to impose sanctions on Russia over Ukraine, but will continue to resist and no invasion will take place. Relations with China will remain tense but I don’t see a serious deterioration or any major blow-ups over Taiwan. China will be focused at home and continue to crack down internally as Xi continues to amass more power. The Olympics will be postponed because many athletes will not be able to get there. Talks with Iran on a nuclear deal will continue, but no new deal will be reached. The coalition government in Israel will fall, and Netanyahu will become Prime Minister again. Macron will lose the French election in a shocker, and Boris Johnson will survive a no confidence vote.

4 – Inflation will remain high throughout the year, another factor that will hurt the democrats in the midterm elections. The Fed will raise interest rates two times during the year, not three as previously announced, as global economic growth will be slower than expected. The supply chain issues will continue to work themselves out and thing should be back to normal on this front by late summer. But with continued worries over Covid, the labor markets will continue to be unstable, with employers (retail, restaurants) continuing to have problems hiring.

3 – The economy will chug along at a moderate pace, hampered by the labor issues mentioned above. Consumer confidence will be hampered throughout the year by higher prices, but gas prices should come down by mid-year. The hybrid work model will continue to become permanent, and many companies will adopt a flexible model of allowing employees to work from home at least a few days a week. A much smaller Build Back Better Bill will pass, but the bitterness caused by the delay, coupled with the impending elections, will make this the only major piece of legislation passed in 2021.

2 – The word of the year in the stock market will be volatility in light of the ongoing uncertainty caused by Covid variants. But company fundamentals remain strong, as companies have been able to pass costs on to consumers. There will be a 10% correction during the year, perhaps in response to Fed tightening , but this is a normal part of any stock market cycle, and the markets will end up modestly for the year – but less than 5%. Cryptocurrencies will continue to gain in popularity, and they will continue to be extremely volatile, but will end the year higher overall.

1 – Finally, my Achilles Heal the past few years, sports. Georgia will win the college football national championship, capping off an undefeated year and sadly beating my Wolverines. Predicting who will win the Super Bowl is a tough one, because as of now I see a lot of mediocre teams. But since I have to make a prediction, I am going to go with the Kansas City Chiefs. Baylor will win the NCAA basketball tournament. The Phoenix Suns will be NBA champs, and the Minnesota Wild will win the Stanley Cup. Finally, the Los Angeles Dodgers will reclaim their place as baseball champions.

How Did I Do? Review of Top 10 Prediction for 2021

Thursday, December 9th, 2021

Before I bravely (or stupidly) try to predict what will happen in 2022, let’s take a look at how I have done so far this year. New comments are bolded. Pretty happy with how I did – especially given the fact that I never imagined that January 6th and the Delta variant would control so much of the 2021 narrative. But that’s what makes this fun!

I should have my head examined for even making predictions for 2021. I should probably just say that there will be a lot of uncertainty and leave it at that.

But that wouldn’t be fun – would it? So here I go again. As always, please keep in mind this is what I think will happen – not necessarily would I would like to see happen.

10 – President Trump will leave office and the White House on January 20th (he might in fact vacate the WH before that date) and Joe Biden will become our 46th President. Trump will not concede and he will not attend the inauguration. He will quickly associate himself with a right-leaning media organization (Newsmax, One America Network or Rush Limbaugh as examples) to either produce his own show or be a frequent guest. He will also explore starting his own media empire. His talk of running again in 2024 will fade as the year progresses but his influence within the GOP will persist. This was pretty accurate. He did not associate himself with any news organizations (but was a pretty frequent guest on Fox), but late in the year he did announce the creation of his own media platform called Truth Social. His influence has definitely not waned, and he is still talking about 2024, although he recently said that he would not make an announcement until after the midterm elections. 

9 – President Trump will pardon his children and many of his close associates (Rudy) before he leaves office (some of these might take place in 2020 after this is posted), but he will not attempt to pardon himself. While the Democrats in Congress will not begin a large number of investigations into Trump and his allies in an attempt to cool the partisan atmosphere in Washington, expect NY State to quickly and vigorously investigate The Trump Organization and the President’s other business dealings. Partially right on here. I think if not for January 6th, he would have gone ahead and pardoned his children. Who could have predicted what happened on that day? Partisanship has definitely not cooled! And the fight over his taxes with NY State continues.

8- I went back and forth on this one, but made a last minute decision to predict that the Democrats will win the two Georgia Senate seats and essentially take control of the Senate with Kamala Harris being the tie-breaking vote. Why did I change my mind? Because I just read that more people have already voted by mail (December 21st) than did in total in the November general election. Such high turn out favors the Democrats as does President Trump’s continued criticism of Georgia election officials, which could lead to low turnout on the Republican side. Ironically, Susan Collins (who almost lost her re-election bid) and other moderate Senators like Mitt Romney and Lisa Murkowski will yield more day-to-day power than Majority Leader McConnell, as their willingness to work across the aisle will give them powerful leverage in determining the success/failure of Biden’s agenda in such an evenly split Senate. I was right on the Senate races and while the Republican Senators did help negotiate and pass the bi-partisan infrastructure bill I did miss how the most powerful Senators would be two Democrats – Manchin and Sinema – and they would make life hard for their own leaders more than the opposition!

7 – The Senate will block at least two of Biden’s nominees, but the Secretary of Defense will be confirmed with a waiver. There will be another major stimulus bill passed within the first 60 days of the new administration and a major infrastructure bill will pass in the first half of the year. Given the small House majority, however, there will not be a major tax bill passed; any changes will be smaller and more targeted. Efforts will also be made early in the year in reestablishing our international standing and willingness to reengage with the rest of the world, especially with fears of a Taliban resurgence in the face of recent U.S. troop withdrawals from the region. Pretty good here. Austin was confirmed, nobody was blocked but at least one nominee took her name out of contention faced with opposition. Stimulus was passed, as was infrastructure eventually (but not in the first half of the year). Biden did make early gains on the international front, but the sloppy Afghanistan withdrawal made some allies question us. Taliban fears panned out quicker than anyone imagined.

6 – There will be one or two additional new Covid-19 vaccines approved in the first quarter, and everyone who wants to be vaccinated in the U.S. will be able to be by the end of June. The Biden Administration will increase overall confidence in the vaccine and herd immunity will be reached in time for the start of school in the Fall. (Trying to be optimistic and realistic here.) Life will not get back to near normalcy, however, until at least January 2022. Conditional approval was actually given to three vaccines and everyone was able to get a vaccine. What I did not anticipate was the hesitancy among so many and that the issue would become so politicized (but I should have in today’s world!). Herd immunity was not reached but most schools were able to reopen. And life is certainly not yet fully back to normal, although things are looking up, at least in the U.S. Of course until Omicron appeared and chaos reigned once again as the year ended.

5 – Executive orders will make rejoining the Paris Climate Accord and the World Health Organization early highlights of the Biden Administration, but entering into a new deal with Iran will prove to be more tricky. I don’t envision any new deal (or modification of the existing one) during 2021. There will be little progress with North Korea, and the two leaders will not meet.The U.S. will sign a trade deal with the UK. Was correct about everything but the U.S. and the UK signing a trade deal in 2021. Nuclear talks did start again near year-end, but no visible progress has been made yet.

4 – Biden’s efforts to re-engage with our allies should help lesson NATO clashes. Tensions with Russia will rise, especially in light of the recent evidence  of ongoing hacking, and I expect some significant new sanctions will be put into place. Relations with China will be tense as well, fueled by the Trump administration’s late 2020 exit from the Open Skies Treaty, but I expect less trade war rhetoric and fewer sanctions. There will be continued progress with Israel and other Middle Eastern government normalizing relations, but I expect fewer U.S. concessions to make this happen. Relations with Israel will remain good, but I don’t expect Biden and Netanyahu to have a close relationship. The leadership succession plan in Germany will finally become clearer. Boris Johnson’s popularity will continue to decline, especially after his botched handling of Christmas, but he will survive the year as leader; he will not, however, learn how to use a comb. Mixed bag here. Relations with Russia and China remain cool, but not much progress has been made in the Middle East and of course Netanyahu is no longer in office (at least for now).  The succession to Merkel has been messy, and taken longer than anticipated, though it did happen in early December and while Boris Johnson’s popularity did increase during the Fall, it began to wane again near year-end when stories emerged that there were Christmas parties in 2020 at Downing Street in violation of Covid rules. 

3 – The economy will go into another mini-recession early in the year because of the delay in passing a stimulus bill until late Q42020 and the lingering effects of this new strain of Covid-19. As more people get vaccinated, however, and the spread of the virus slows post-holidays, the economy will pick-up quickly IF there is another stimulus bill and a comprehensive infrastructure bill. If either of these efforts stalls, the recession will be longer and deeper. In any case, economic growth should pick-up in the last quarter of the year as the travel and entertainment sectors begin to recover. The outlook for these industries remains bleak, however, as it will be years before things are back to near normal. Wrong on the recession and the economy has done well even with the delay in passing the infrastructure bill. Travel and entertainment have picked-up as the economy has opened, but I completely missed three other black swans – longer-lasting inflation, labor shortages and growing issues with global supply chains. That is what makes this fun – what will next year’s surprises be?

2 – The stock market will continue on its upward trajectory, but as always it is a market of stocks – and industry performance will vary significantly. The stay at home trend is here to stay even when herd immunity is reached. More people will be working remotely, and people have gotten used to the new normal. I don’t expect to see people running back to gyms and entertainment venues when they have invested in equipment at home. As a whole the market will be up 3% – 5% for the year, with technology stocks continuing to perform well even with a somewhat struggling economy. Bitcoin and others cryptocurrencies will continue to become more mainstream in what is quickly becoming a cashless society amidst concerns over touching objects in public. Cash has not become as obsolete as I thought that it would, while cryptos did continue an impressive run before pulling back in December. People have rushed back to gyms and entertainment venues in part because the Delta variant made the pandemic last longer and people were so desperate to get out! Offices have delayed reopening in many cases and many companies will remain remote or be hybrid. The market’s remarkable comeback continued until Omicron brought back late-year volatility. As I right this, optimism is picking up again as it appears that current vaccines (with a booster) are still effective against the latest variant.

1 – Finally, sports – which has been my achilles heel for the past few years. Ohio State will win the college football national championship with an asterisk, since they only played six games. This was my second last minute change. I originally had Ohio State, then switched to Clemson because I didn’t think the Buckeyes looked so good against Northwestern. BUT I just read that Saban and Swinney both ranked OSU out of their final Top Four. This will serve as a great motivator for Ohio State and they should have most if not all of the 20+ players that were out of the last game back. Revenge is a great motivator (in my humble option it is ND that should have been left out of the top four). The Kansas City Chiefs will beat the Green Bay Packers in the Super Bowl. Gonzaga will win the college basketball national championship. The following teams will repeat as champions – the Los Angeles Dodgers in baseball, the Tampa Bay Lightening in Hockey and the Los Angeles Lakers in basketball. Once again – I was pretty bad here once again! Clemson won the college football title – OSU didn’t even make it to the final. The goat proved me wrong again, but you have to admire his greatness. Baylor beat Gonzaga – I was so close. And of course those predicted repeats did not happen.

Top 10 Predictions for 2021

Tuesday, December 22nd, 2020

I should have my head examined for even making predictions for 2021. I should probably just say that there will be a lot of uncertainty and leave it at that.

But that wouldn’t be fun – would it? So here I go again. As always, please keep in mind this is what I think will happen – not necessarily would I would like to see happen.

10 – President Trump will leave office and the White House on January 20th (he might in fact vacate the WH before that date) and Joe Biden will become our 46th President. Trump will not concede and he will not attend the inauguration. He will quickly associate himself with a right-leaning media organization (Newsmax, One America Network or Rush Limbaugh as examples) to either produce his own show or be a frequent guest. He will also explore starting his own media empire. His talk of running again in 2024 will fade as the year progresses but his influence within the GOP will persist.

9 – President Trump will pardon his children and many of his close associates (Rudy) before he leaves office (some of these might take place in 2020 after this is posted), but he will not attempt to pardon himself. While the Democrats in Congress will not begin a large number of investigations into Trump and his allies in an attempt to cool the partisan atmosphere in Washington, expect NY State to quickly and vigorously investigate The Trump Organization and the President’s other business dealings.

8- I went back and forth on this one, but made a last minute decision to predict that the Democrats will win the two Georgia Senate seats and essentially take control of the Senate with Kamala Harris being the tie-breaking vote. Why did I change my mind? Because I just read that more people have already voted by mail (December 21st) than did in total in the November general election. Such high turn out favors the Democrats as does President Trump’s continued criticism of Georgia election officials, which could lead to low turnout on the Republican side. Ironically, Susan Collins (who almost lost her re-election bid) and other moderate Senators like Mitt Romney and Lisa Murkowski will yield more day-to-day power than Majority Leader McConnell, as their willingness to work across the aisle will give them powerful leverage in determining the success/failure of Biden’s agenda in such an evenly split Senate.

7 – The Senate will block at least two of Biden’s nominees, but the Secretary of Defense will be confirmed with a waiver. There will be another major stimulus bill passed within the first 60 days of the new administration and a major infrastructure bill will pass in the first half of the year. Given the small House majority, however, there will not be a major tax bill passed; any changes will be smaller and more targeted. Efforts will also be made early in the year in reestablishing our international standing and willingness to reengage with the rest of the world, especially with fears of a Taliban resurgence in the face of recent U.S. troop withdrawals from the region.

6 – There will be one or two additional new Covid-19 vaccines approved in the first quarter, and everyone who wants to be vaccinated in the U.S. will be able to be by the end of June. The Biden Administration will increase overall confidence in the vaccine and herd immunity will be reached in time for the start of school in the Fall. (Trying to be optimistic and realistic here.) Life will not get back to near normalcy, however, until at least January 2022.

5 – Executive orders will make rejoining the Paris Climate Accord and the World Health Organization early highlights of the Biden Administration, but entering into a new deal with Iran will prove to be more tricky. I don’t envision any new deal (or modification of the existing one) during 2021. There will be little progress with North Korea, and the two leaders will not meet.The U.S. will sign a trade deal with the UK.

4 – Biden’s efforts to re-engage with our allies should help lesson NATO clashes. Tensions with Russia will rise, especially in light of the recent evidence  of ongoing hacking, and I expect some significant new sanctions will be put into place. Relations with China will be tense as well, fueled by the Trump administration’s late 2020 exit from the Open Skies Treaty, but I expect less trade war rhetoric and fewer sanctions. There will be continued progress with Israel and other Middle Eastern government normalizing relations, but I expect fewer U.S. concessions to make this happen. Relations with Israel will remain good, but I don’t expect Biden and Netanyahu to have a close relationship. The leadership succession plan in Germany will finally become clearer. Boris Johnson’s popularity will continue to decline, especially after his botched handling of Christmas, but he will survive the year as leader; he will not, however, learn how to use a comb.

3 – The economy will go into another mini-recession early in the year because of the delay in passing a stimulus bill until late Q42020 and the lingering effects of this new strain of Covid-19. As more people get vaccinated, however, and the spread of the virus slows post-holidays, the economy will pick-up quickly IF there is another stimulus bill and a comprehensive infrastructure bill. If either of these efforts stalls, the recession will be longer and deeper. In any case, economic growth should pick-up in the last quarter of the year as the travel and entertainment sectors begin to recover. The outlook for these industries remains bleak, however, as it will be years before things are back to near normal.

2 – The stock market will continue on its upward trajectory, but as always it is a market of stocks – and industry performance will vary significantly. The stay at home trend is here to stay even when herd immunity is reached. More people will be working remotely, and people have gotten used to the new normal. I don’t expect to see people running back to gyms and entertainment venues when they have invested in equipment at home. As a whole the market will be up 3% – 5% for the year, with technology stocks continuing to perform well even with a somewhat struggling economy. Bitcoin and others cryptocurrencies will continue to become more mainstream in what is quickly becoming a cashless society amidst concerns over touching objects in public.

1 – Finally, sports – which has been my achilles heel for the past few years. Ohio State will win the college football national championship with an asterisk, since they only played six games. This was my second last minute change. I originally had Ohio State, then switched to Clemson because I didn’t think the Buckeyes looked so good against Northwestern. BUT I just read that Saban and Swinney both ranked OSU out of their final Top Four. This will serve as a great motivator for Ohio State and they should have most if not all of the 20+ players that were out of the last game back. Revenge is a great motivator (in my humble option it is ND that should have been left out of the top four). The Kansas City Chiefs will beat the Green Bay Packers in the Super Bowl. Gonzaga will win the college basketball national championship. The following teams will repeat as champions – the Los Angeles Dodgers in baseball, the Tampa Bay Lightening in Hockey and the Los Angeles Lakers in basketball.

How Did I Do? Review of Top 10 Predictions for 2020

Thursday, December 17th, 2020

I think it is safe to say that most of you are probably as happy as I am that 2020 is coming to an end. Before I make my predictions for next year, I want to review my predictions for 2020 – both sets of them.

You might recall that given the pandemic, I updated the predictions at the end of June. I was not asking for a redo, and I stand by my initial predictions, but given the nature of the year I felt it appropriate to adapt to the unusual circumstances and update my predictions for the second half of the year.

My initial prediction is first. The updated prediction is in ( ) and my year-end comments are bolded.

10 – President Trump will be acquitted in the Senate and remain in office. No information has yet emerged that indicates that Republicans in Congress who have supported him so far will change their minds. While this is currently the expected result, what I am really predicting here is that no bombshells will appear that will result in the Republican-led Senate turning against Trump. There will also be talk among Democrats of a second impeachment soon after the election, and before the year ends. (Kind of hard to update this prediction other than to say that there has already been talk of a second impeachment and additional hearings into some of the conduct of the Administration, At this point, however, I think as a nation we are too tired and distracted to do much here. It will be all about fighting the pandemic, making progress on social justice reform and of course the election.) I turned out to be right here, but as we all know, progress on social justice reform has, and will continue to be, slow and we continue to fight the pandemic.

9 – Joe Biden will be the Democratic nominee and pick Kamala Harris as his running partner. (I am sticking with this. If not Harris, however, my money would be on Val Demings.) Was right here as well. I should have stopped at two predictions!

8 – President Trump will be re-elected (with Mike Pence as his VP) after one of the ugliest campaigns in modern history, and the country will remain deeply divided. The Republicans will keep the Senate (barely) and the Democrats will keep the House but with a smaller majority. At least one if not two members of the “Squad” will lose in their re-election bids. (I now believe that the Democrats will sweep the election and win the presidency and both Houses of Congress. The left wing of the party will actually take more of the seats on the Democratic side and the “Squad” will stay intact. I believe that there is a 75% chance that Biden will win in a landslide. Trump will not fight leaving office, but will announce an unprecedented number of controversial pardons before he goes.) Mixed bag here. While the left  wing of the Democratic party did gain seats, the party underperformed overall in both the House and the Senate (we will have to wait until the beginning of January to see who will control the Senate). One could argue both ways on whether Biden won in a landslide. He had large margins in both the popular vote and the Electoral College, and his total in the College was the same that Trump declared to be a landslide 4 years ago. And the pardons have begun … and will continue.

7 – There will be some legislative progress early in the year, post-impeachment trial, as both parties will be hungry to show the country progress. The final revised U.S.-Mexico-Canada Agreement and an infrastructure bill will be two of the successes. No meaningful legislation will pass after June with the exception of a trade deal with the U.K. (I’m not sure that the stimulus packages that have been passed would count here since no one could have anticipated them. The new trade deal was finalized earlier in the year. Trump recently mentioned an infrastructure bill but I don’t see anything other than perhaps one more stimulus bill being passed the rest of the year. We are already in campaign mode; Congress couldn’t even make significant progress on law enforcement reform in the face of the mass nation-wide demonstrations.) My updated prediction turned out to be correct. But I guess one could argue that given the political divide, this was a pretty easy call!

6 – Brexit will occur early in the year thanks to the surprisingly large Conservative victory in the general election held in December; Boris Johnson’s gamble worked. The U.S. and Britain will sign a comprehensive new trade agreement during the year, and Britain will negotiate a trade agreement with the EU so that it will not be a no-deal Brexit despite year-end concerns that a deal might not be struck. (The U.S. will not have a new trade agreement with Britain before the end of the year. I don’t think there will be a final agreement on Brexit before year-end either. There may be an extension however, given the pandemic, so the discussion of a deal v. no-deal Brexit might be pushed into 2021. Finally, Trump will increase European tariffs before the end of the year on some products, increasing tensions with these countries.) As we go to print, my updated predictions were pretty accurate, although it looks like there not be an extension and there will be a no-deal Brexit. But since this is being published before year-end, there is a slight chance that a deal will be reached since negotiations have gone into overtime.

5 – Elsewhere overseas, Merkel will call new elections and not be President of Germany at the end of the year. Netanyahu will not be Prime Minister of Israel at year-end either, and may in fact be standing trial by year-end. I also predict that Netanyahu will not even be the candidate for PM in the upcoming election, as the Likud Party will turn him out in the wake of his legal problems. Political turmoil in France will continue, further dimming Macron’s political future. There will be no progress toward Middle East peace once again, and the growing divide between Trump and Kim Jong-un will increase. (Merkel will in fact stay in power, as she has gained even more stature thanks to her response to the pandemic. Netanyahu will leave office at the end of next year as part of a power-sharing agreement made to be able to form a government, but his power will wane with Trump’s defeat and he will never be PM again (this is more of  a 2021 story). No progress will of course be made with North Korea for the rest of the year, but I don’t think tensions will escalate before the election. Trump will also not confront Putin despite continued Russian interference. His relationship with Putin will be a very big issue in the election, and not be a positive for him. World leaders helped by the pandemic in addition to Merkel include Trudeau in Canada. Macron remains weakened and Boris Johnson has been hurt by the UKs initial response to the pandemic, and while he will stay in office for now, his political future looks bleak.) Once again, the updated predictions turned out to be pretty good. Although the fate of many of these leaders really is a 2021 story. 

4 – The economy will do surprisingly well as overall trade tensions will ease with China, but it will again be up and down and progress will be slow (Trump will be very accommodating with his policies and rhetoric, recognizing that this is the only way he will win re-election). The U.S. Federal Reserve, while considering increasing interest rates, will remain neutral throughout the year so as not to be seen influencing the election. (The Fed will continue its proactive actions to prop up the economy in the face of the pandemic, but this will be in the form of additional asset purchases rather than interest rate cuts for the remainder of the year. The country will end the year in recession, as the recent flair-ups in the pandemic will slow economic growth and ensure that there is no v-shaped recovery.) Missed this one except the prediction on the Fed. The economy is not in recession, although things are looking worse heading into next year as the pandemic continues to take its toll. It does look like this will not be a normal v-shaped recovery.

3 – The stock market will also do better than expected, rising about 10% (S&P 500). There will be general relief that the Democratic candidates at the far left of the spectrum will not be on the ticket and again Trump will do everything he can to help boost the economy and to take credit. (The market will give back some of its recents gains over the rest of the year, but will not retest the March lows. While typically the market would fear the election of a Democrat, and one party winning the presidency and Congress, I believe the market will rally after the election on hope for a more unified country moving forward. The market will end the year down between 3% and 5% and will be volatile along the way. GDP growth will remain negative through the end of the year with debt levels growing to unprecedented levels.) While there was some volatility, and a little bit of a pullback, the performance of the stock market continued upward – surprising to me. GDP growth rebounded faster than I thought (although that may reverse) but debt levels continue to grow.

2 – It will be a quiet year for the financial services industry, as fewer mergers are apt to take place in an election year. The anti-finance rhetoric of the left will also be muffled after the Democratic nominee is decided. The first Bitcoin ETF will be approved in a surprising resurgence of the crypto-currency.(Other than the Schwab/TD merger, and the recent Orion/Brinker Capital merger, it has been a quiet year, but for different reasons than I had previously believed. No resurgence of Bitcoin. There will be a continued move to a cashless society in the face of the pandemic. Not much will happen the rest of the year as the election looms and companies in general do not want to make changes that might worry investors who are already on edge.) Bitcoin continues to amaze me as it hit a record level this week. I do think we will continue to see this move to cashless in the face of the pandemic (where people don’t want to touch physical things) and because of the work from home trend which will continue (more on that in the upcoming predictions).

1 – And turning to sports, I will try to redeem myself after two bad years in a row. LSU will win the NCAA Football National Championship. The Ravens will beat the 49ers in the Super Bowl. Louisville will win the NCAA Basketball Championship. The Washington Capitals will win the Stanley Cup, the Milwaukee Bucks will win the NBA Championship and the NY Yankees will rise again and win the World Series. (Not sure what to say here – although LSU did win. There will be no NCAA Basketball champion, and while I hate to say this, while the major league seasons will either start or restart soon, I am not convinced that they won’t be shuttered again and no champions crowned. I actually lean toward this being the case, as well as there being at best an abbreviated college football season. So no further predictions here – too much uncertainty. Big money talks, but at the end of the day if the players believe that their health is in danger then there is no way sports seasons can continue.) There have been many cancelations, but the sports have continued. The NBA pulled off its bubble. And I again pretty much missed the sports that did crown champions. I will try again next year!

Update: Top 10 Predictions For The New Normal

Tuesday, June 30th, 2020

I think that it’s safe to say that 2020 has so far turned out to be far different than anyone expected (or envisioned in their worst nightmare). The global pandemic has changed our lives in almost incomprehensible ways. I thought it would be appropriate to provide an update to my 2020 predictions – because while things are different, we’re still going to have elections in November, the markets are still open and life goes on, albeit very differently.

Now – I’m not abandoning my earlier predictions nor asking for a do-over. However as I sit here a little more than six months after I made my initial predictions, my  view of what the next six months will bring has been dramatically altered.

My initial predictions are presented below with an updated prediction in bold. I am going to try my best to be optimistic but also realistic. And as always, I am predicting what I think will happen.

10 – President Trump will be acquitted in the Senate and remain in office. No information has yet emerged that indicates that Republicans in Congress who have supported him so far will change their minds. While this is currently the expected result, what I am really predicting here is that no bombshells will appear that will result in the Republican-led Senate turning against Trump. There will also be talk among Democrats of a second impeachment soon after the election, and before the year ends. Kind of hard to update this prediction other than to say that there has already been talk of a second impeachment and additional hearings into some of the conduct of the Administration, At this point, however, I think as a nation we are too tired and distracted to do much here. It will be all about fighting the pandemic, making progress on social justice reform and of course the election.

9 – Joe Biden will be the Democratic nominee and pick Kamala Harris as his running partner. I am sticking with this. If not Harris, however, my money would be on Val Demings.

8 – President Trump will be re-elected (with Mike Pence as his VP) after one of the ugliest campaigns in modern history, and the country will remain deeply divided. The Republicans will keep the Senate (barely) and the Democrats will keep the House but with a smaller majority. At least one if not two members of the “Squad” will lose in their re-election bids. I now believe that the Democrats will sweep the election and win the presidency and both Houses of Congress. The left wing of the party will actually take more of the seats on the Democratic side and the “Squad” will stay intact. I believe that there is a 75% chance that Biden will win in a landslide. Trump will not fight leaving office, but will announce an unprecedented number of controversial pardons before he goes.

7 – There will be some legislative progress early in the year, post-impeachment trial, as both parties will be hungry to show the country progress. The final revised U.S.-Mexico-Canada Agreement and an infrastructure bill will be two of the successes. No meaningful legislation will pass after June with the exception of a trade deal with the U.K. I’m not sure that the stimulus packages that have been passed would count here since no one could have anticipated them. The new trade deal was finalized earlier in the year. Trump recently mentioned an infrastructure bill but I don’t see anything other than perhaps one more stimulus bill being passed the rest of the year. We are already in campaign mode; Congress couldn’t even make significant progress on law enforcement reform in the face of the mass nation-wide demonstrations. 

6 – Brexit will occur early in the year thanks to the surprisingly large Conservative victory in the general election held in December; Boris Johnson’s gamble worked. The U.S. and Britain will sign a comprehensive new trade agreement during the year, and Britain will negotiate a trade agreement with the EU so that it will not be a no-deal Brexit despite year-end concerns that a deal might not be struck. The U.S. will not have a new trade agreement with Britain before the end of the year. I don’t think there will be a final agreement on Brexit before year-end either. There may be an extension however, given the pandemic, so the discussion of a deal v. no-deal Brexit might be pushed into 2021. Finally, Trump will increase European tariffs before the end of the year on some products, increasing tensions with these countries.

5 – Elsewhere overseas, Merkel will call new elections and not be President of Germany at the end of the year. Netanyahu will not be Prime Minister of Israel at year-end either, and may in fact be standing trial by year-end. I also predict that Netanyahu will not even be the candidate for PM in the upcoming election, as the Likud Party will turn him out in the wake of his legal problems. Political turmoil in France will continue, further dimming Macron’s political future. There will be no progress toward Middle East peace once again, and the growing divide between Trump and Kim Jong-un will increase. Markel will in fact stay in power, as she has gained even more stature thanks to her response to the pandemic. Netanyahu will leave office at the end of next year as part of a power-sharing agreement made to be able to form a government, but his power will wane with Trump’s defeat and he will never be PM again (this is more of  a 2021 story). No progress will of course be made with North Korea for the rest of the year, but I don’t think tensions will escalate before the election. Trump will also not confront Putin despite continued Russian interference. His relationship with Putin will be a very big issue in the election, and not be a positive for him. World leaders helped by the pandemic in addition to Merkel include Trudeau in Canada. Macron remains weakened and Boris Johnson has been hurt by the UKs initial response to the pandemic, and while he will stay in office for now, his political future looks bleak.

4 – The economy will do surprisingly well as overall trade tensions will ease with China, but it will again be up and down and progress will be slow (Trump will be very accommodating with his policies and rhetoric, recognizing that this is the only way he will win re-election). The U.S. Federal Reserve, while considering increasing interest rates, will remain neutral throughout the year so as not to be seen influencing the election. The Fed will continue its proactive actions to prop up the economy in the face of the pandemic, but this will be in the form of additional asset purchases rather than interest rate cuts for the remainder of the year. The country will end the year in recession, as the recent flair-ups in the pandemic will slow economic growth and ensure that there is no v-shaped recovery. 

3 – The stock market will also do better than expected, rising about 10% (S&P 500). There will be general relief that the Democratic candidates at the far left of the spectrum will not be on the ticket and again Trump will do everything he can to help boost the economy and to take credit. The market will give back some of its recents gains over the rest of the year, but will not retest the March lows. While typically the market would fear the election of a Democrat, and one party winning the presidency and Congress, I believe the market will rally after the election on hope for a more unified country moving forward. The market will end the year down between 3% and 5% and will be volatile along the way. GDP growth will remain negative through the end of the year with debt levels growing to unprecedented levels.

2 – It will be a quiet year for the financial services industry, as fewer mergers are apt to take place in an election year. The anti-finance rhetoric of the left will also be muffled after the Democratic nominee is decided. The first Bitcoin ETF will be approved in a surprising resurgence of the crypto-currency. Other than the Schwab/TD merger, and the recent Orion/Brinker Capital merger, it has been a quiet year, but for different reasons than I had previously believed. No resurgence of Bitcoin. There will be a continued move to a cashless society in the face of the pandemic. Not much will happen the rest of the year as the election looms and companies in general do not want to make changes that might worry investors who are already on edge. 

1 – And turning to sports, I will try to redeem myself after two bad years in a row. LSU will win the NCAA Football National Championship. The Ravens will beat the 49ers in the Super Bowl. Louisville will win the NCAA Basketball Championship. The Washington Capitals will win the Stanley Cup, the Milwaukee Bucks will win the NBA Championship and the NY Yankees will rise again and win the World Series. Not sure what to say here – although LSU did win. There will be no NCAA Basketball champion, and while I hate to say this, while the major league seasons will either start or restart soon, I am not convinced that they won’t be shuttered again and no champions crowned. I actually lean toward this being the case, as well as there being at best an abbreviated college football season. So no further predictions here – too much uncertainty. Big money talks, but at the end of the day if the players believe that their health is in danger then there is no way sports seasons can continue.

Top 10 Predictions for 2020

Wednesday, December 18th, 2019

Time again to take out my crystal ball (or magic eight-ball) and have some fun predicting what will happen next year. These predictions are in no particular order, and please remember that these are predictions of what I think will happen, not necessarily what I want to happen; click here to see how I did with my Top 10 Predictions for 2019.

With so much uncertainty going on in the world today, and given that we are heading into a Presidential election year amid an impending impeachment trial in the Senate, I think making predictions for 2020 will be the hardest yet. But that is part of the fun. I am going to either be really right or really wrong!

10 – President Trump will be acquitted in the Senate and remain in office. No information has yet emerged that indicates that Republicans in Congress who have supported him so far will change their minds. While this is currently the expected result, what I am really predicting here is that no bombshells will appear that will result in the Republican-led Senate turning against Trump. There will also be talk among Democrats of a second impeachment soon after the election, and before the year ends.

9 – Joe Biden will be the Democratic nominee and pick Kamala Harris as his running partner.

8 – President Trump will be re-elected (with Mike Pence as his VP) after one of the ugliest campaigns in modern history, and the country will remain deeply divided. The Republicans will keep the Senate (barely) and the Democrats will keep the House but with a smaller majority. At least one if not two members of the “Squad” will lose in their re-election bids.

7 – There will be some legislative progress early in the year, post-impeachment trial, as both parties will be hungry to show the country progress. The final revised U.S.-Mexico-Canada Agreement and an infrastructure bill will be two of the successes. No meaningful legislation will pass after June with the exception of a trade deal with the U.K.

6 – Brexit will occur early in the year thanks to the surprisingly large Conservative victory in the general election held in December; Boris Johnson’s gamble worked. The U.S. and Britain will sign a comprehensive new trade agreement during the year, and Britain will negotiate a trade agreement with the EU so that it will not be a no-deal Brexit despite year-end concerns that a deal might not be struck,

5 – Elsewhere overseas, Merkel will call new elections and not be President of Germany at the end of the year. Netanyahu will not be Prime Minister of Israel at year-end either, and may in fact be standing trial by year-end. I also predict that Netanyahu will not even be the candidate for PM in the upcoming election, as the Likud Party will turn him out in the wake of his legal problems. Political turmoil in France will continue, further dimming Macron’s political future. There will be no progress toward Middle East peace once again, and the growing divide between Trump and Kim Jong-un will increase.

4 – The economy will do surprisingly well as overall trade tensions will ease with China, but it will again be up and down and progress will be slow (Trump will be very accommodating with his policies and rhetoric, recognizing that this is the only way he will win re-election). The U.S. Federal Reserve, while considering increasing interest rates, will remain neutral throughout the year so as not to be seen influencing the election.

3 – The stock market will also do better than expected, rising about 10% (S&P 500). There will be general relief that the Democratic candidates at the far left of the spectrum will not be on the ticket and again Trump will do everything he can to help boost the economy and to take credit.

2 – It will be a quiet year for the financial services industry, as fewer mergers are apt to take place in an election year. The anti-finance rhetoric of the left will also be muffled after the Democratic nominee is decided. The first Bitcoin ETF will be approved in a surprising resurgence of the crypto-currency.

1 – And turning to sports, I will try to redeem myself after two bad years in a row. LSU will win the NCAA Football National Championship. The Ravens will beat the 49ers in the Super Bowl. Louisville will win the NCAA Basketball Championship. The Washington Capitals will win the Stanley Cup, the Milwaukee Bucks will win the NBA Championship and the NY Yankees will rise again and win the World Series.

 

How Did I Do? Review Of My Top 10 Predictions for 2019

Friday, December 13th, 2019

I will unveil my Top 10 Predictions for 202o soon, but for now, lets see how I did this year. Original text is following by my comments in bold.

I am honestly having a hard time finding a lot to be optimistic about, as I think 2019 will be very volatile and uncertain – politically, both here and abroad, economically and for the markets. There are not many people looking for compromise or bipartisanship, and I only see it getting worse. I hope that I am wrong! Politically, things did not get any better, they actually got worse, but the strong performance of the stock market was an unexpected surprise – so I guess overall you have to feel somewhat positive overall as the year ends.

10 – The Mueller investigation will conclude by the end of the first quarter. At least one Trump (not the President) will be indicted, and the real possibility of a constitutional crisis will emerge if the President pardons him (them). President Trump will not be indicted for collusion with Russia, but there will enough in the report (perhaps obstruction of justice or campaign finance violations or questionable actions concerning his businesses) to set the Democrats off and running toward impeachment even though he will not be indicted while in office. The Democrats have to be careful to act rationally and to continue to try to get legislation passed at the same time, or they will hurt themselves leading into 2020. Donald Trump will still be President at year-end. A mixed bag here I guess! The report was done by the end of the first quarter, but no indictments – so crisis avoided for now. The President was not indicted in the Mueller Report, and the Ukraine issue is what ultimately sent the Democrats off on the impeachment trail. Trump will still be President at year-end, and it is too soon to know whether the current legislative stall will hurt Democrats next November (although recent progress on the new trade agreement with Canada and Mexico looks promising).

9 – The only hope of getting any meaningful legislation done next year will occur early in the year before the Mueller investigation results become public. The most likely accomplishment would be an infrastructure bill, which would receive wide bipartisan support during the honeymoon period of Pelosi working with the Senate and the President. Once the report is completed/released, however, I think the rest of the year will be filled with partisan fighting, subpoenas, hearings, etc. I put the odds of even infrastructure legislation passing at less than 30%; the Democratic leadership distrusts the President and as more bad news links out about the Mueller probe the political pressure on them not to cooperate with the White House will increase. I was unfortunately pretty close here – not a whole lot was accomplished this year through legislation. There was no infrastructure bill passed, and most things that got done were by Executive Order. 

8 – At least 15 Democrats, including Joe Biden, Cory Booker and Kamala Harris, will announce their candidacies for President. There will be a few surprises as well, perhaps a few lesser known Governors, as well as Beto O’Rourke. Michael Bloomberg will decide not to run, and either Bernie Sanders or Elizabeth Warren will run as well, but not both. My money is on Sanders for now, as Warren has become too controversial and I think people are already kind of over her. And at least two Republicans will challenge Trump by year-end, although I think Jeff Flake will not be one of them. So, a mixed bag here. I was right on the number of Democrats running, on Beto, on some Republicans challenging and on Flake not running, but Sanders and Warrens are both running and Bloomberg made a late surprise entrance into the race. 

7 – In what will make an already tumultuous political environment even worse, there will be an opening at the U.S. Supreme Court during the year. I am not going to speculate on how this opening will occur, but the hearings and ultimate confirmation (since the Republicans have increased their majority in the Senate) will make the Kavanaugh hearings look like a walk in the park. I got this one wrong, although there were a few times that health issues with RBG scared a lot of people.

6 – Having just delayed the Brexit vote in the House of Commons, the May government will fall and there will be new elections. The Tory’s will keep power – barely – with a new Prime Minister, and a second referendum on leaving the EU will be called. (This is being published one day after the vote was postponed, so some of these events might become happen before the end of 2018.) This time, voters will decide to stay in the EU, and despite having egg on its face, this is actually the best outcome for the country. (I don’t honestly think the majority ever wanted to leave; this whole fiasco is the result of what can happen when you have an off-cycle issue-related election where turnout is low.) The Court ruling last week that the U.K. could stay without the approval of the other EU members paves the way for this outcome. This story will obviously continue into 2020. Teresa May did resign, there were new elections, the Tories did keep power, but it happened so late in the year that nothing will get done before year-end. Not to steal any of the thunder from next year’s predictions, the election results did take a lot of mystery out of how this will end!

5 – Political upheaval in Europe will continue. Even though an ally has taken over as head of her party, Merkel’s influence and hold on power will continue to weaken throughout the year, and there will be elections held before year-end. While Macron has finally spoken and is trying to appease the demonstrators, I think the riots will continue into 2019. He will survive the year as President – barely – but his influence will be greatly diminished; he has become in effect a lame duck already. Italy will avoid a financial crisis, although its bond and stock markets will be more jittery than elsewhere on the Continent. In the Middle East, Netanyahu will lose a no-confidence vote in parliament over his financial dealings, and there will be new elections (which he will lose). There will be no Mideast progress toward peace as the Trump Administration will be occupied elsewhere, and at least one other country will leave OPEC. Relations with Saudi Arabia will continue to deteriorate as the Senate presses on the Khashoggi murder, but no arms deals will be canceled. As to China, the back and forth of a trade war, no trade war, will continue. Every time we will seem to take a step forward, we will take a step backward as was the case in 2018. Any deals will be short-lived. Lots here to digest – with the biggest story of the year (and one that dominated the markets) was the continuation of the trade war with China. Merkel, surprisingly, is still in power. I really thought her health issues (she was seen visibly shaking in public a number of times) would force here to retire, especially sine an ally became head of her party. Macron has held on to power, but remains weakened as the last month has seen mass protests and public strikes over pension reform. While Netanyahu is still Prime Minister of Israel, he is hanging on by a thread, and was just indicted on bribery charges. The country faces its third election in less than a year, and there is no question that Netanyahu is severely weakened. There was no progress toward Middle East peace, and the President has become increasingly isolated in his support for Saudi Arabia, especially after the recent shooting in Florida. Another interesting year that was hard to predict.

4 – For financial services, it will be a tumultuous year, with Democrats taking over the House of Representatives. While there will be a lot of Committee meetings and talk about increasing regulations and making life tougher on the banks, no overreaching legislation will pass (since it would not make it through the Senate). But because of the chatter, there will be a lot of nervousness in the industry, and I expect fewer mergers and more firms taking a wait and see attitude. Bitcoin will continue to struggle and will eke out a small gain for the year. But many efforts to increase the number of Bitcoin investment vehicles, such as ETFs, will not move forward. There was some negative press about the industry (a lot of it part of the democratic presidential campaign), but overall a pretty quiet year in the industry. Bitcoin fell, and seemed to continue to lose some of its momentum.

3 – The Fed will make good on its promise to slow the rate of interest rate increases, and I see two increases at the most during 2019, perhaps only one. The economy will begin to slow by mid-year, as corporate profits, while still impressive, will continue to decline from the record rates seen during the second half of 2018. Businesses will cut back on spending as the uneven economic policies of the Trump Administration continue. Real estate markets will continue to slow as well, as a slowing economy and continuing political uncertainty take their toll on people’s willingness to spend. But the economy will not turn negative in 2019 and there will be no recession. The economy slowed, there was no recession and the Fed has put its rate drops on hold for now, but did drop rates more than I thought than they would during the year. Many real estate markets did slow.

2 – The market will continue the volatility seen in the fourth quarter of 2018. The market hates uncertainty, and everything I have predicted here points to more uncertainty. The highs will be high – as when there is a positive announcement on trade for example, and the lows will low – as when one administration official contradicts another. The market will be down about 5% for the year, with technology stocks doing slightly better than the market as a whole. International developed markets ex the U.S. will be down about 10% on average next year and emerging markets will be down even more. The yield curve will be slightly inverted by the end of the year. Wrong on stocks. The year was better than most anticipated, but the volatility that we did see was mostly due to China and trade talks. And while the yield curve did invert during the year, it did not end the year inverted.

1 – And turning to sports, I hope I will do better than I did in 2018! Clemson will win the NCAA Football National Championship, finally beating Alabama. The Rams will beat the Chiefs in the Super Bowl after barely beating the Saints in the NFC Championship Game. Going with my heart here, Michigan will win the NCAA Basketball Championship (Duke would be my second choice), Tampa Bay will win the Stanley Cup, the Warriors will repeat again as NBA champions and the Red Sox will once again win the World Series. Not a good year on my sports predictions! Only got Clemson right unfortunately! Hoping I can do a little better here in 2020!

Top 10 Predictions for 2019

Tuesday, December 11th, 2018

Time again to take out my crystal ball (or magic eight-ball) and have some fun predicting what will happen next year. These predictions are in no particular order (and please remember that these are predictions of what I think will happen, not necessarily what I want to happen); click here to see how I did with my 2018 Top 10 Predictions.

I am honestly having a hard time finding a lot to be optimistic about, as I think 2019 will be very volatile and uncertain – politically, both here and abroad, economically and for the markets. There are not many people looking for compromise or bipartisanship, and I only see it getting worse. I hope that I am wrong!

10 – The Mueller investigation will conclude by the end of the first quarter. At least one Trump (not the President) will be indicted, and the real possibility of a constitutional crisis will emerge if the President pardons him (them). President Trump will not be indicted for collusion with Russia, but there will enough in the report (perhaps obstruction of justice or campaign finance violations or questionable actions concerning his businesses) to set the Democrats off and running toward impeachment even though he will not be indicted while in office. The Democrats have to be careful to act rationally and to continue to try to get legislation passed at the same time, or they will hurt themselves leading into 2020. Donald Trump will still be President at year-end.

9 – The only hope of getting any meaningful legislation done next year will occur early in the year before the Mueller investigation results become public. The most likely accomplishment would be an infrastructure bill, which would receive wide bipartisan support during the honeymoon period of Pelosi working with the Senate and the President. Once the report is completed/released, however, I think the rest of the year will be filled with partisan fighting, subpoenas, hearings, etc. I put the odds of even infrastructure legislation passing at less than 30%; the Democratic leadership distrusts the President and as more bad news links out about the Mueller probe the political pressure on them not to cooperate with the White House will increase.

8 – At least 15 Democrats, including Joe Biden, Cory Booker and Kamala Harris, will announce their candidacies for President. There will be a few surprises as well, perhaps a few lesser known Governors, as well as Beto O’Rourke. Michael Bloomberg will decide not to run, and either Bernie Sanders or Elizabeth Warren will run as well, but not both. My money is on Sanders for now, as Warren has become too controversial and I think people are already kind of over her. And at least two Republicans will challenge Trump by year-end, although I think Jeff Flake will not be one of them.

7 – In what will make an already tumultuous political environment even worse, there will be an opening at the U.S. Supreme Court during the year. I am not going to speculate on how this opening will occur, but the hearings and ultimate confirmation (since the Republicans have increased their majority in the Senate) will make the Kavanaugh hearings look like a walk in the park.

6 – Having just delayed the Brexit vote in the House of Commons, the May government will fall and there will be new elections. The Tory’s will keep power – barely – with a new Prime Minister, and a second referendum on leaving the EU will be called. (This is being published one day after the vote was postponed, so some of these events might become happen before the end of 2018.) This time, voters will decide to stay in the EU, and despite having egg on its face, this is actually the best outcome for the country. (I don’t honestly think the majority ever wanted to leave; this whole fiasco is the result of what can happen when you have an off-cycle issue-related election where turnout is low.) The Court ruling last week that the U.K. could stay without the approval of the other EU members paves the way for this outcome.

5 – Political upheaval in Europe will continue. Even though an ally has taken over as head of her party, Merkel’s influence and hold on power will continue to weaken throughout the year, and there will be elections held before year-end. While Macron has finally spoken and is trying to appease the demonstrators, I think the riots will continue into 2019. He will survive the year as President – barely – but his influence will be greatly diminished; he has become in effect a lame duck already. Italy will avoid a financial crisis, although its bond and stock markets will be more jittery than elsewhere on the Continent. In the Middle East, Netanyahu will lose a no-confidence vote in parliament over his financial dealings, and there will be new elections (which he will lose). There will be no Mideast progress toward peace as the Trump Administration will be occupied elsewhere, and at least one other country will leave OPEC. Relations with Saudi Arabia will continue to deteriorate as the Senate presses on the Khashoggi murder, but no arms deals will be canceled. As to China, the back and forth of a trade war, no trade war, will continue. Every time we will seem to take a step forward, we will take a step backward as was the case in 2018. Any deals will be short-lived.

4 – For financial services, it will be a tumultuous year, with Democrats taking over the House of Representatives. While there will be a lot of Committee meetings and talk about increasing regulations and making life tougher on the banks, no overreaching legislation will pass (since it would not make it through the Senate). But because of the chatter, there will be a lot of nervousness in the industry, and I expect fewer mergers and more firms taking a wait and see attitude. Bitcoin will continue to struggle and will eke out a small gain for the year. But many efforts to increase the number of Bitcoin investment vehicles, such as ETFs, will not move forward.

3 – The Fed will make good on its promise to slow the rate of interest rate increases, and I see two increases at the most during 2019, perhaps only one. The economy will begin to slow by mid-year, as corporate profits, while still impressive, will continue to decline from the record rates seen during the second half of 2018. Businesses will cut back on spending as the uneven economic policies of the Trump Administration continue. Real estate markets will continue to slow as well, as a slowing economy and continuing political uncertainty take their toll on people’s willingness to spend. But the economy will not turn negative in 2019 and there will be no recession.

2 – The market will continue the volatility seen in the fourth quarter of 2018. The market hates uncertainty, and everything I have predicted here points to more uncertainty. The highs will be high – as when there is a positive announcement on trade for example, and the lows will low – as when one administration official contradicts another. The market will be down about 5% for the year, with technology stocks doing slightly better than the market as a whole. International developed markets ex the U.S. will be down about 10% on average next year and emerging markets will be down even more. The yield curve will be slightly inverted by the end of the year.

1 – And turning to sports, I hope I will do better than I did in 2018! Clemson will win the NCAA Football National Championship, finally beating Alabama. The Rams will beat the Chiefs in the Super Bowl after barely beating the Saints in the NFC Championship Game. Going with my heart here, Michigan will win the NCAA Basketball Championship (Duke would be my second choice), Tampa Bay will win the Stanley Cup, the Warriors will repeat again as NBA champions and the Red Sox will once again win the World Series.