Tips and advice for personal finance from the Dolans. This video focus' on the investment predictions for 2008.
Ken Dolan: Alright, Daria everybody is making predictions for 2008 and I owned an old chestnut, an old saying I’m going to throw at you. Are you ready? Daria Dolan: Yes. Ken Dolan: If you’re making predictions some will be right. Daria Dolan: Sooner or later you’ll make one right. Ken Dolan: Let’s do a few though and relating to money and the economy. Daria Dolan: Alright. Ken Dolan: Alright here. Daria Dolan: Well, I predict this that anybody has a half of brain in their head in looking at all the banks of financial institutions that have been in trouble because of the sub-prime mortgage mess. The smart ones won’t be taking any investment right to the advice from banks and brokers. Ken Dolan: That’s not on our list. Daria Dolan: No, I know but I just have to put that in there. It just struck me today. Ken Dolan: Alright. Daria Dolan: If you’re so smart why aren’t you rich? Ken Dolan: I’ve got another way to put where are the customers you asked? Daria Dolan: Yeah. Ken Dolan: Well, thanks for the whole prediction things. Daria Dolan: No, go ahead, predict your way. Ken Dolan: I think we’re looking at—I think we could be seeing a thousand dollar per ounce gold with all the political and economic turmoil. Daria Dolan: And then I just say for him to say anything positive about gold. Ken Dolan: It’s amazing. Daria Dolan: It is a total miracle. Ken Dolan: Yeah, because I’m not have been a great fan of gold over the years but I’m going to tell and next you believe it’s moving. Housing can decline of any continuous especially in places like Florida and California. I’m just reading, yeah. Daria Dolan: Nevada, Ohio. Ken Dolan: Foreclosures were up 68% over this time last year. We’re looking at prices down probably in the five to six percent range. We’re talking nationally now, median home price down five to six percent. You may or may not agree Daria, I’m hoping and thinking that somewhere in the year 2009 that will start to flatten out a little bit. We hope anyway. Daria Dolan: Yes, I think that for those of you that really have to you know want to sell but don’t need to sell, you’re looking at a long hold until 2009 at the least. Ken Dolan: The big debate now on CNBC and all the MSNBC and all the channels Bloomberg, etcetera is, are we in a recession or we headed to a recession? Well, in all sort of not so funny definition is that when you lost your job it’s a recession. When you and when your wife loses her job too then it’s a depression. But I think we are going to see at least a mild recession during the course of our wave. Daria Dolan: I think it’s going to be more than a mild recession. I think it’s going to be a very terrible recession which is why it’s so important now to start pairing back debt and giving your balance sheet in order. Ken Dolan: Well, dollar will continue which is— Daria Dolan: Which is why gold is going to be strong. Ken Dolan: Which is I don’t think that’s going to continue what‘s that going to mean. Daria Dolan: It’s going to mean that everything you go to the store to buy is going to cost you more because 99% of everything at the store is not manufactured here. It’s imported from elsewhere. Ken Dolan: It may not be 99% but I saw toy 80% of the toys are. Daria Dolan: Yeah. Ken Dolan: It might be close to that. We’re now and more of a service economy than a making economy. Daria Dolan: And understand this, service jobs pay a whole lot less than the other jobs. Ken Dolan: Speaking of sort of the economic numbers we expected the gross domestic product will slow to about two percent. It’s been higher than the course of 07. Now I think inflation will be I, we. Daria Dolan: No, you. Ken Dolan: Why? Daria Dolan: Go ahead. Ken Dolan: Inflation? Alright, I think inflation will be in the two to two and a quarter percent area and apparently someone near and dear to me and quite close at the moment disagrees. Daria Dolan: I think it’s going to be a lot higher than that four, even five percent. Ken Dolan: Let’s keep a track and with that. Let’s see who’s right. Daria Dolan: But you will not know it by what the government numbers are, that spouted to you in the so-called headline numbers because they’re going to continue to report inflation without factoring in food and fuel. Good luck. Ken Dolan: Another prediction, we’re going to have, the good news is we expect many more energy conscious Americans. The cost of gas heating your home, cooling your home is totally out of control. We’ve just got to do something. We’ve got to start with ourselves. Daria Dolan: I also have one other prediction I didn’t make the list. Ken Dolan: That prediction that you were trying to say? Daria Dolan: Prediction. Ken Dolan: Yes. Daria Dolan: Incandescent light bulbs, there’s going to be such a run on them before it’s new logo’s into effect. Daria Dolan: Yeah. Ken Dolan: We should be in that business. And last what last but not the least, Daria can agree or disagree I think interest rates are going to be possibly at six percent as maybe even as high as six and a quarter or six and a half by the mid or the end of 2009. I think interest rates are going up. Daria Dolan: If interest rates do go up then we can put aside the other predictions that we made such as higher gold prices, a weaker dollar. All of those things will go away if we finally get some rational thinking at Federal Reserve in DC and see some higher rates not lower. Ken Dolan: Keep this tape. We’re going to look back this time next year and see how right or wrong we were. Do you have some predictions for 2008 domains at Dolans.com we’d like to hear them? Daria Dolan: Yeah.