Will Marriage Make You Richer?

I predict a rise in the value of stocks in late summer and early spring due to the marriage rush I see going on in several counties of California.

Many businesses are competing with each other to get in on this lucrative market. With the average wedding celebration going for the several thousands of dollars it seems to be a prosperous time for the wedding preparations industry. Companies catering to newly weds range from flower decor to upscale durables will be benefiting in the short and long run in California.

Companies based in the San Francisco Bay area and Death Valley are very likely to see some capital gains within the next few months. I think companies such as Urban Outfitters (URBN), Macy's (M) and others in the Retail industry would experience a raise in the value of their stock for maybe 5% to 10% withing the next 6 months.

But will these newly weds be buying houses, too? The mortgage crisis is just starting. We should be looking at about at least another year of write downs and losses in the financial and home building industries, after which the market will slowly start to recoup it's value which happens to be overpriced and oversold at the moment. I don't believe we have git a bottom yet. However, Fannie (FNM) and Freddie (FRE) will eventually go back up and investors will recover their losses if they act quickly and wisely. Keep in mind that a bear market normally lasts between 6 months to 2 years. Our current bear market has been in effect for about 6-8 months.

I also recommend the Energy and Food sectors of the economy as a buy! With the growing hunger of big China and India you will be looking at food items to rise at least another 25% within the next year, although inflation could be higher if it wasn't for other issues influencing our economy nowadays. As it's has been discussed in previous months, the issue of illegal immigration has affected many communities in ways never seen before. Many small cities in the Midwest rely on laborers with no professional skills. It is very advantageous to hire cheaper labor (at least in the short term), so I think part of the solution to this current market would be to legalize most of those living in poverty right now... remember that they are also consumers and will affect our economy positively due to their liquidity. Inflation might go up but it wont be as high as it's has been in other trouble decades like the 70's where there inflation was expected and we saw the inflation rate as high as 14.8%... Ouch!!!

Good luck with your investments and be kind to humanity.

peace :)