Peter Leeds Reveals 2011's New Economic Reality

RALEIGH, NC, December 13, 2010 (Press-News.org) Unfortunately, 2011 will usher in a new economic reality, according to Peter Leeds, an investment guru known as The Penny Stock Professional.

"We'll see a slight, although underwhelming recovery, and this will play out in several ways," stated Leeds.

The following 7 points should help investors, whether involved with penny stock companies, blue chips, real estate, or bonds, to prepare themselves for what's to come, and potentially profit.

There is something for everyone in the predictions. Peter Leeds gives his take on computer hacking, North Korea, interest rates, China, stock market performance, unemployment rates, and merger/acquisition activity.

"While each prediction may seem separate," said Leeds, "they are all interconnected. Taken together, these seven related opinions provide you with a view of what the world might look like in 2011."

According to Peter Leeds:

1. Coordinated computer hacking (such as denial of service attacks, like those against PayPal and Visa in the last few weeks) will become commonplace, claims Leeds. While such digital attacks have been growing in frequency over the last 10 years, we're about to enter a new "golden age of computer hacking," the likes of which we have never seen.

He explains that this will be the first true test of the stability of the Internet since its invention in 1989, because the perpetrators are getting organized. Rallying in support of Julian Assange (WikiLeaks founder), the attacks are focused and numerous, which significantly increases their impact.

There will also be a lot of companies working to battle denial of service attacks, and other known methods of website hacking. Some of these corporations will be publicly traded penny stock companies, and may represent a great investment opportunity for investors in penny stocks.

2. The current trade war and currency war (in its early stages) between America and China will cool off. Both sides will keep a close eye on each other, with plenty of diplomatic activity and political pressure going both ways, which will result in both nations "playing nice."

Peter Leeds commented that, "The economies are increasingly tied together, and most of America's debt is owed to China. It's in both nations' interests to do well together."

He added that this means backing away from smaller trade and currency wars for the sake of the greater good for both sides.

3. Hostilities between North Korea and the rest of the world will cool off in general, but there will be further alarming (although hopefully minor) incidents throughout the year. This situation will not go away.

"The fact is that countries (like people) generally do what they've always done," stated Leeds. "North Korea will continue with bad behavior whenever it will serve them diplomatically, which will be two or three times in 2011."

4. In the first 6 to 10 months of 2011, equities will perform very well. Stocks, penny stocks, and the market indexes will enjoy pretty strong growth and returns. A big part of this lift will come from the result of low interest rates and the FED printing more US dollars. Both of which decrease the value of owning bonds, and therefore encourage traders to flow cash into shares.

In the case of penny stocks, they will benefit as the larger stocks start doing well, and investors see their appetite for risk and speculation returning. You will see many undervalued penny stock companies, that have been overlooked for the last few years, becoming the darling stocks and big winners for the majority of 2011.

Later in 2011, while anything could happen, we might see major profit-taking from the gains achieved earlier in the year. This may bring shares all the way back down towards previous levels, or part of the way.

5. American corporations have trillions of dollars on their books in cash right now. This money will be spent for growth, resulting in merger and acquisition activity levels greater (in number and value) than we have ever seen.

6. Unemployment rates will fall very slowly in 2011. We will not see, however, unemployment of less than 7.5%, with numbers in the range of 8% to 8.5% most likely. With the weak domestic economy, the cost savings and efficiency of outsourcing production and jobs, and the American hunger for low-priced products, we likely may never see unemployment rates as strong as 6% ever again.

7. Interest rates will rise in 2011 two or three times, but not at all aggressively. Most of that activity, if not all, will most likely take place in the second half of the year. By the end of 2011, rates will have gone up 1.75% at most, but probably not even that much.

"Taken together, this all adds up to a new economic reality," said Leeds. "While it may be hard for some, there will be numerous opportunities for penny stock and large cap investors to make significant profits."

Leeds went on to add that 2011 could be a very good year for some, if they anticipate and embrace the new economic reality before everyone else does.

Peter Leeds is an investment expert known as The Penny Stock Professional. His company's online newsletter focused on penny stocks is one of the most popular in the world. Located at http://pennystocks.com, with over 10,000 subscribers from 6 continents and dozens of countries, they provide unbiased reports on top quality companies with very solid fundamentals.