Top Ten Market (& Non-Market) Predictions For 2008

How could we let the last week of 2007 slip by and not submit our predictions for the coming year? Besides, everybody else seems to be doing it - why not put our entries on the board?

I'll be the first to admit I don't have a crystal ball, so take everything I say with a grain of salt. Moreover, some of what I believe may have no bearing whatsoever on the stock market. (Surely you didn't think small caps were my only area of interest.) However, if we can have a little fun while thinking about the future, I'm game. 

In no particular order, here are ten of the dozens of things I see in store for the coming year. 

1. I think a true recession will be staved off before it begins. How? Because everybody and their brother is worried about it, or doing something about it. I know I'm a closet contrarian, but I can't help it - things just rarely happen when most everyone sees it coming. A true recession will sneak up on us quietly, when the talking heads on TV aren't talking about it. 

There's a downside to avoiding a recession though...I think inflation will have to be unchained in order to fuel some decent economic growth. It's a fair price to pay, but not a fun one. 

2. Though I love politics, I truly have no political bias. So, don't take it personally when I say.... 

I think the Democrats will pick Hillary as their man, err, woman. The Republican horse-race will remain undecided until late in the game, but I think John McCain - despite his age - will actually get the nod before the GOP's national convention (avoiding a brokered convention, which would scream "we can't really pick one"). In the end, I see McCain winning a tight race, but I also see yet-another-election-process fiasco to put the whole thing in question. 

3. I have to think BioCurex (OTCBB: BOCX) will finally start the long-awaited production and marketing of their cancer test technology. From my understanding, it's close to ready. We've also heard rumors that another licensee is on the verge of getting on board. (Remember, Abbott doesn't have exclusive rights.) The presentation at the ISOBM conference in September was quite positive...the technology just needs some fine tuning. 

Interestingly, we've heard nothing from BioCurex since then - which is kind of our red flag. BioCurex's publicity efforts tend to run hot and cold, so we have to wonder what's been getting done over the last three quiet months. It may be unleashed in a wave of news in 2008. 

4. I expect value stocks - and small cap value in particular - to make a nice recovery after their very long drought. 

I don't know how many of you keep up with sector and style performance, but if you do, you'll know value stocks have been in their own mini bear market, while growth stocks have been in a bull market. Just for the record, small cap value is down 15.7% for the year, while mid cap growth is up 12.8%. All the growth indices are up year-to-date; all the value indices are in the hole year-to-date. 

Though small cap value has been the dragging the bottom, I think that's finally going to change in 2008. Wait for it though, because I don't think it's going to get jump-started on January 2nd of the new year. I think all value stocks will catch up with their growth brethren in the coming year. 

5. In sports, I see the Rockies beating the Indians in the World Series. In the near future, I see the Patriots sustaining their dynasty-like run, this time by topping the Cowboys in Super Bowl XLII...which is Super Bowl #42 for us non-Romans. Of course, I also picked the Bears to cover last year, so what do I know?

On a semi-related note, I see the AFC leading the NFC though the third quarter of the Pro Bowl. Then in an unprecedented move, all the players decide to go home before the fourth quarter starts, when they realize it's not a real game. (Yes, I'm joking.) 

6. Solar power will continue to grow in functionality and feasibility...to the point where it works well enough to actually use on a wide scale. The technology is already pretty good, but I think in 2008 it will get to (or be at?) the point where investors start to give it a serious look. However, I still consider it an early-stage that could take a few years to bear fruit. At least some key players could emerge though. 

7.Later in the year, Titan Global (OTCBB: TTGL) is still likely to get the NASDAQ exchange listing they've been wanting, leaving its bulletin board status behind. 

They had a NASDAQ application already in the works, but withdrew it several days ago. The reason? The stock has to trade at or above $4.00 for several months before the NASDQQ will make a listing. Rather than push shares up to the required price level via a reverse split, the company just wants to focus on doing what it does so well...which is growing the top and bottom lines. 

However, I still foresee a NASDAQ listing by late 2008. Why? I seem to keep saying this over and over again (mostly because I can't believe it), but... 2008's projected sales are $740 million, and the current market cap is roughly $150 million. I expect the market to finally figure this out in 2008, and start to trade TTGL at appropriate price levels. 

8. I suspect Spicy Pickle (OTCBB: SPKL) will open its 100th store by the end of 2008. 

9. The financial stocks could exceed everyone's expectations and provide some huge rewards. As bad as some of the subprime losses were, I think the market's reaction - a massive devaluation of the entire sector - was overkill. Plus, with the Fed doing everything they can to buoy stocks, I think the financials are likely to be a Cinderella story. 

Better still, factor in the news that Martin Whitman is interested in Ambac Financial (NYSE: ABK), MBIA Inc. (NYSE: MBI), and other financial stocks. Warren Buffett also tipped his hand with his planned purchase of part of Marmon Holdings. What do they see? 

10. My sleeper sector for 2008 is telecom. I think technology will continue to roll, but its strength hasn't really been a secret. Real estate and REITs could surprise a few folks too. 

Bonus Prediction: I believe someone formerly from the world of politics will make their way onto TV's 'Dancing With The Stars'. I don't know who it could be, but somebody has to out-do Trump's use of celebrities on his show 'The Apprentice'. However, in the case of 'The Apprentice' as well as 'Dancing', seeing celebrities and politicians compete will make us all long for the days when the competitors weren't politicians or celebrities. 

That's it for today. Again, though I wouldn't have listed anything I didn't feel strongly about, these are just my predictions and are far from being ironclad (twelve months is a long time...a lot can change between now and then). There is something I do know for sure though... 

We appreciate your continued readership through another year. With your feedback, support, and suggestions, each of you have helped make the Small Cap Network a great resource for traders like yourselves. We think 2008 is going to be our best year ever, and we hope the same is true for you and yours as well. 

We may publish one more edition before 2007 comes to a close, but if not, have a great and safe New Year's Day holiday.
 

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