Happy New Year

My prediction for 2006? Growth in infrastructure and environmental technologies. IE: heavy industries like CATERPILLAR (CAT) . I am also going to go out on a limb: GM will rebound. As much as I don't like what GM is making now (they have pushed back good car technologies as far as they can), I think they will come out swinging with new technologies and leap ahead of their competitors. OK maybe not in 2006 but in five years....

Turn that yield curve frown upside down:
What can be positive about an inverted yield curve? I think the fed is managing inflation well. Sustainable growth is good. Rates on long term bonds are lower than short term rates because... well I have no idea. I can see the brighter side of this because the curve in the early 90's, after a hard real estate market, fortold low inflation and high tech investment.


The big question is what will drive growth? Investment in infrastructure is very likely, especially abroad. I think people will want more efficient cars, a shorter trip to work (but not at home), more time to travel, a good environment, a way to retire in good health, and possible a fantastic future in space. Fashion and trendy electronics are falling off (I am overwhelmed by choices and don't really want anything to pass time in my house or ot a station)

Surf Notes:
Billibong is buying Nixon watches, and Reef is supplying surfboard blanks ( a big supplier suddenly stopped)
How much more can surf companies grow? China? India? I think alternative sports companies can grow.