2010-2011 Economic Predictions For the "Average Joe"

2010-2011 Economic Predictions For the "Average Joe" Average Joe Prediction #1: The economy will slump into another recession by the end of 2010. This is double trouble for the Average Joe. You combine a slowing economy with high unemployment, along with the end of tax cuts and you end up with a situation that will squeeze the middle class. To combat this problem, focus your effort on keeping a reserve of cash on hand, as well as current or future sources or ideas of generating extra income quickly.

Average Joe Prediction #2: The stock market will gyrate in wild up and down swings with mostly sideways movement, perhaps ending 2010 at the 8000-8500 level. The 2011 market may trend lower, to perhaps the 6000-6500 level by year end 2011. Media will not admit to continual signs of economic weakness and hope for a return of a bull market. People like "Cramer" on TV will insist the market is oversold and that now is the best time to buy. For the Average Joe, you may want to consider investments that include financial stocks supported directly or indirectly by the government. These may be the only safe havens that can provide returns. Small and mid-capped stocks might get thrown under the bus since they do not have the strength to combat higher taxes, health care reform and slow markets. Average Joe Prediction #3: Oil prices will go up, and gas will end 2010 at .25 per gallon on average, while 2011 will yield prices at the -.00 per gallon level. This might seem high, but considering the current BP disaster, the government in conjunction with the oil industry, will start price hikes for a number of reasons. The biggest reason will be to help pass legislation on cap and trade, to pressure the public that alternative energy is the best way to go. The other factor will be the BP disaster, and its inflated effect on the oil markets. The rug will be pulled out from under the Average Joe in this case, with price hikes taking people by surprise. A good hedge for this problem is to simply conserve fuel by purchasing fuel efficient vehicles. 30 to 40 miles per gallon sub compact cars, as well as car pooling can keep this item in line on your budget. Average Joe Prediction #4: Possible changes in currency/dollar value. In this case inflation or deflation may be the outcome by 2011. For the Average Joe, you can prepare for this scenario by forming alliances with other people and businesses that like to barter or trade goods and services, rather than paying for them with devalued or overvalued dollars. 2010-2011 Economic Predictions For the "Average Joe"