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Results for Market Forecast April 16-20, 2007 Copyright 2007, A New Story Foundation, Inc All rights reserved. And ongoing reassessment of April Monthly Forecast

Results for Market Forecast April 16-20, 2007 Copyright 2007, A New Story Foundation, Inc All rights reserved. And ongoing reassessment of April Monthly

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Page 1: Results for Market Forecast April 16-20, 2007 Copyright 2007, A New Story Foundation, Inc All rights reserved. And ongoing reassessment of April Monthly

Results for Market Forecast

April 16-20, 2007

Copyright 2007, A New Story Foundation, Inc

All rights reserved.

And ongoing reassessment of April Monthly Forecast

Page 2: Results for Market Forecast April 16-20, 2007 Copyright 2007, A New Story Foundation, Inc All rights reserved. And ongoing reassessment of April Monthly

Overview

• Our forecasted socioeconomic theme of “turbulence, volatility and violence” for the week was right on.

• The associated market movements were, for the most part, not as forecasted.

• We conclude NOT to continue to publish market forecasts for the time being.

Copyright 2007, A New Story Foundation, Inc.

Page 3: Results for Market Forecast April 16-20, 2007 Copyright 2007, A New Story Foundation, Inc All rights reserved. And ongoing reassessment of April Monthly

A Week of Violence

• Forecasted Theme: Turbulence, Volatility, and Violent movements.

• Expectation was that some type of violent outbreak would occur with corresponding abrupt, turbulent, “violent” market movements.

• Monday: Virginia Tech shooting.

• Wednesday: 180+ lost in Iraq car bombs.

Page 4: Results for Market Forecast April 16-20, 2007 Copyright 2007, A New Story Foundation, Inc All rights reserved. And ongoing reassessment of April Monthly

Market Movement Not as Expected

Correct:• Dollar forecast net change “close to 0”

– Opened for the week at 81.79, closed at 81.44; down only 0.4%.

Incorrect:• Oil forecast net gain of 2.3%

– Actual was down 2.9%

• Dow forecast net drop of 3% or more– Actual was up 1.2%

Page 5: Results for Market Forecast April 16-20, 2007 Copyright 2007, A New Story Foundation, Inc All rights reserved. And ongoing reassessment of April Monthly

Half right, but half wrong

• We are encouraged that we were able to spot a “week of violence” through our market forecasting before it happened.

• However, the anticipated corresponding market movements never materialized.

Page 6: Results for Market Forecast April 16-20, 2007 Copyright 2007, A New Story Foundation, Inc All rights reserved. And ongoing reassessment of April Monthly

Conclusions

• The forecasts that are “right on” such as the Dollar this week tell us that we are on to something beyond random guessing.

• However, there is currently no way to tell the likelihood that a given forecast will be right or not.

• For the time being, we will no longer publish weekly forecasts, as their use to the general public is limited.

Copyright 2007, A New Story Foundation, Inc.

Page 7: Results for Market Forecast April 16-20, 2007 Copyright 2007, A New Story Foundation, Inc All rights reserved. And ongoing reassessment of April Monthly

April Monthly Forecast - updateEnd of 3rd 6 day segment

Page 8: Results for Market Forecast April 16-20, 2007 Copyright 2007, A New Story Foundation, Inc All rights reserved. And ongoing reassessment of April Monthly

Crude Oil (through 4-18-07)

• Tracking below forecast at this point• Less confidence that Crude will climb to full extent of original $78 forecast.

% Price Change, Cumulative - April 2007

-6

-4

-2

0

2

4

6

8

10

1 7 13 19 25 30

Crude Oil Forecast Actual

Page 9: Results for Market Forecast April 16-20, 2007 Copyright 2007, A New Story Foundation, Inc All rights reserved. And ongoing reassessment of April Monthly

US Dollar Index (through 4-18-07)

• US Dollar still tracking very well thus far. Moderate confidence it will continue downward trend at this point.

% Price Change, Cumulative - April 2007

-2.5

-2

-1.5

-1

-0.5

0

1 7 13 19 25 30

US Dollar Forecast Actual

Page 10: Results for Market Forecast April 16-20, 2007 Copyright 2007, A New Story Foundation, Inc All rights reserved. And ongoing reassessment of April Monthly

The Stock Market (through 4-18-07)

• Lowered confidence in S&P forecast at this point

% Price Change, Cumulative - April 2007

-5

-4

-3

-2

-1

0

1

2

3

4

1 7 13 19 25 30

S&P Forecast Actual

Page 11: Results for Market Forecast April 16-20, 2007 Copyright 2007, A New Story Foundation, Inc All rights reserved. And ongoing reassessment of April Monthly

Gold (through 4-18-07)

• Low confidence; though actuals approaching forecast.

% Price Change, Cumulative - April 2007

-6

-5

-4

-3

-2

-1

0

1

2

3

4

1 7 13 19 25 30

Gold Forecast Actual

Page 12: Results for Market Forecast April 16-20, 2007 Copyright 2007, A New Story Foundation, Inc All rights reserved. And ongoing reassessment of April Monthly

April – ongoing assessment

• We will be watching most intently through the end of the month for any significant market movements in line with our original forecast.

• At this time, we can not say conclusively whether or not an increased geopolitical risk or the perception thereof is on the horizon.

Page 13: Results for Market Forecast April 16-20, 2007 Copyright 2007, A New Story Foundation, Inc All rights reserved. And ongoing reassessment of April Monthly

Conclusion

• Regardless of whether the actuals for the month of April end up more in line with our original forecast or not, we have decided NOT to continue to publish market forecasts of any type until:– We understand why sometimes they don’t

work.– We have a method of giving a confidence

level to the forecast at the outset.

Page 14: Results for Market Forecast April 16-20, 2007 Copyright 2007, A New Story Foundation, Inc All rights reserved. And ongoing reassessment of April Monthly

Disclaimer

A New Story Foundation is not a brokerage firm nor are we professional investment advisors. Please consult the appropriate person/firm for specific investment advice.

More information can be found on our website at http://anewstory.org.

Page 15: Results for Market Forecast April 16-20, 2007 Copyright 2007, A New Story Foundation, Inc All rights reserved. And ongoing reassessment of April Monthly

Thanks for your interest.