Byron Wien, Chief Investment Strategist of Pequot Capital Management since 2005 (before Senior Investment Strategist of Morgan Stanley) has published his forecasts for 2007.

(Zum Vergleich: Byron Wien: 10 Surprises in 2006 )

1. The S&P 500 exceeds 1600 thanks to strong earnings, and market volatility jumps.
2. China revalues the yuan by 10%.
3. Crude remains in short supply because of Asian demand, pushing oil to $80 a barrel.
4. Agricultural prices rise – corn at $5 a bushel, wheat to $7, soybeans to $9 and cotton to 80 cents a pound.
5. S&P 500 earnings grow by 10% in 2007.
6. The Fed doesn’t lower rates in the spring, and the 10-year yield rises to 5.5%, with the yield curve resuming a positively sloped shape.
7. Gold hits $800 an ounce and silver rises to near $18.
8. Japan’s Nikkei 225 rises 15% as the Japanese economy improves.
9. Latin America does well, particularly Brazil, where the Bovespa index rises to 55,000 (currently 44,780).
10. Rudy Guiliani pulls ahead as the leading candidate for Republicans and Barack Obama “gains momentum” for the Democrats.