Here are the remaining forecasts I’m making for 2007:

Gold: I expect gold to be the number one investment of 2007 as the U.S. dollar continues to fall against other world currencies. I don’t see the euro or yen as being a real alternative to the U.S. dollar; hence I see gold bullion as being the main benefactor of a weak greenback. Quality gold stocks will be the winning story of 2007. Have you put some in your Christmas stocking yet?

U.S. Dollar: As the U.S. economy continues to slow, as the federal deficit continues above $500 U.S. billion a year, the U.S. dollar will continue to fall. Warren Buffett and other investors betting against the U.S. dollar will get their wish in 2007. How far the dollar will fall one cannot be certain. But if the Greenback is in for a crash landing, you can bet the Fed will take their time to lower rates. If you, like I, believe the Greenback is headed lower, you should be looking at foreign denominated stocks. Again, I like stocks listed on the TSX (what I like to call Canada’s equivalent to the NYSE). My favorites on the TSX? Gold and resource stocks.

Oil: The problem in 2007 won’t be oil prices getting out of control. The real question is what currency will OPEC members and other large oil producers want to be paid in? Producers of oil wanting to be paid in something other than U.S. dollars could cause oil prices to rise.

Bonds: I expect bonds to continue to move higher in price as the market bets heavier the Fed will cut rates to help the economy. The only factor that could send the price of U.S. bonds the other way (lower) would be a collapse of the U.S. dollar against other world currencies. And finally...

The Economy: Most economies around the world, except for China, are starting to show what I call growth cracks. In my opinion, 2007 will be a terrible year for the U.S. economy as it deals with its real estate and debt bubbles.

Final note for 2006...

At this time each year our editorial teams signs off for the holiday season. Between now and the beginning of January we’ll be sending you offers for our various investment products at discounted prices... our way of saying thanks to all our loyal PROFIT CONFIDENTIAL followers for their support in 2006. Our regular financial editorials will start back up on January 8, 2007.

We hope we helped make your 2006 more profitable. Or, at the very least, we hope we introduced some thought provoking ideals for you during the year that guided your investment thinking in a safe and profitable direction. We’re looking forward to making 2007 the best financial year ever for you... and we are going to do that by showing you what investments we’d stay away from in 2007 and which ones we’d get into.

From my family to yours, have a wonderful and safe holiday season.