Here are my predictions and Investment Themes for 2008-09

1. Chinese Yuan will continue to appreciate against the dollar and other world currencies
2. Gold Miners stocks will increase as their reserves or potential is revalued compared to the spot price of Gold
3. Fannie Mae and Freddie Mac will be nationalized (either overtly or indirectly)
4. Crude Oil will not fall until India and China remove their oil subsidy
5. Export oriented industries in US, that derive bulk of their revenues from outside the US will perform better than the rest of the economy due to continued dollar depreciation
6. Inflation will be higher than the Fed target value. Headline inflation will range around 4-5% or more.
7. Increase correlation of various asset classes due to proliferation of easily tradeable low cost vehicles
8. Commodity boom will be sustained with periodic corrections of around 5%