Last year I wrote some predictions How did I do?
The FTSE100 will reach an all-time high, for the first time since 1999, and will continue the bull-run. 7,000 will be left behind. Thanks to tightening money, The Oil Price will fall below $100 and stay there. The Brent/WTI spread will narrow from 99/111.Yup, I spotted the fall in oil price. But I didn't bet on it, nor did I expect so precipitous a fall. I think the FTSE will break out in 2015
The Labour lead will fall from 6-8%. UKIP will win popular vote in the European parliament elections, then their support will drift back to the Tories thanks to a strengthening recovery. Scotland will vote 'No' to independence. Ed Miliband will remain a worthless union stooge. The voter-repelling and emetic Ed Balls will remain shadow Chancellor, because his boss is a spineless dweeb, with shit for brains and "Red" Len McClusky's hand up his bum. Tories will post a lead, but I doubt it will be done consistently.Labour's lead has fallen, UKIP did top the poll in the Euros and are now fading. Scotland voted 'no'. Ed Miliband's utter unsuitability for Prime Ministerial office continues to be displayed every day.
The Syrian civil war will not end, but Assad will regain control of much of the country, leaving an islamist insurgency. The world will continue to look the other way. China's growth will slow. The rumblings of dissent new riches have smothered will start to grow louder. The Communist Party may seek to use Sabre-Rattling with Japan to detract domestic opinion from the looming economic crisis. Something dramatic will happen on the Korean Peninsula.I didn't really predict anything specific, nor was I far from consensus. But Korea? Was I prescient?
So onto 2015.
- I think 2015 will be the year the FTSE breaks 7000. One day it will, one day I will be right.
- Oil will fall to $40, and maybe below and stabilise in the $40-60 range. USA becomes the world's swing producer
- The Conservatives will win a thin majority in GE2015. There maybe 2 elections. Don't ask me how. no polling backs this up. But the country doesn't want Miliband, and Cameron's actually done a pretty good job under difficult conditions and doesn't deserve to be sacked. UKIP to win 3-5 seats, Farage to fail in Thanet, the party's national vote share in the 10-12% range.
- China's growth over the past few years will prove to have been overstated. China's slowdown to get worse. India to continue to develop rapidly. Modi proving his critics wrong: He may be the man to get India working and taking its rightful place as a major economic power.
- Russia will try to save whatever face it can for Putin, as it withdraws from Ukraine in response to the falling oil price and continued sanctions. Russia will be set up to rejoin the world financial system in 2016.
- IS will be reduced to a rump by the end of the year, as having been stopped in their tracks on a number of fronts, they will find the supply of jihadis will dry up.
- Darfur will be the international flash-point to watch.
We live in a time of miracles. 3-D printed lungs, and people landing space probes on distant orbiting rocks. The benefits of these miracles are unequally distributed. But they do eventually benefit everyone. Luxuries once unthinkable even to Louis XV such as the world's knowledge at the touch of a button, are available to most, through the miracle of stable institutions, and the creative destruction of free-market capitalism.
This provides opportunity for self-improvement, but also can be a productivity-sucking distraction. Who manages to make the most of the opportunities will set the agenda. Wars end, elections happen. The relentless search for better ways to do things however doesn't stop. Nations hold elections. But policies can be reversed, or turn out to be right all along. But people keep passing on knowledge, which is accumulating at an ever-accelerating rate. We will work stuff out. In time.
Meanwhile a billion people still subsist by patchy subsistence agriculture. Between the relentless march of new miracles, and the acquisition of already acquired technology by new users, there's centuries of improvement in the human condition, economic growth, right there. Meanwhile Britain is climbing UP the economic rankings. Real wages appear to be growing sustainably and the growth returns.
Signal to noise ratio, people. Neither the world, nor Britain is 'going to the dogs', there's no need to vote UKIP. 2014 was the best year in human history. 2015 will be even better.