(EMAILWIRE.COM, December 24, 2009 ) New York, NY - Peter Leeds, the widely recognized authority on penny stocks, has released his predictions for 2010. Along with his team, they have identified several upcoming possibilities for the next year, which will both create opportunities, and generate risks, for investors in penny stocks.

Leeds calls for a drop in the unemployment rate to between 7% and 8%, representing an improvement over current levels, but still falling short of the 5% target set by the government.

"The American economic machine has changed," stated Leeds. "It has matured and evolved, and while it will improve going into 2010 and 2011, we will never again see unemployment at 5% or lower."

Leeds also expects to see a drop in investor fear, and a return to greed and speculation. Penny stocks will once again trade based on potential rather than earnings, which is the more logical way for low-priced, up and coming companies to be valued.

"With greater speculation, we'll see penny stocks benefit across the board," said Leeds. "Look for increases in technology, mining, biotech, nanotech, and service industries, above and beyond increases caused by operational achievements."

Other expectations from the well known Peter Leeds team include a return to higher interest rates, not before April, but thereafter. This will put pressure on consumers, and also on smaller companies with higher debt loads, or that need to finance their activities.

The interest rates hikes are expected to be gradual at first, with more significant tightening in 2011. This will increase the value of the U.S. dollar against other major currencies, but will also make borrowing more costly.

Peter Leeds expects some changes in the distribution of terrorism, but believes that the overall impact and activity levels of such acts will be comparable to previous years. He would anticipate more insurgent activity in regions such as Iraq and Afghanistan, where there is a great deal of transition and American involvement. At the same time, he mentions that we may see less conflict in nations like Indonesia, the Philippines, and Malaysia, as they increasingly integrate with the rule sets of the international economy.

A major prediction made by the Peter Leeds team is that gold prices will reverse, giving back a good portion of their recent run-up above $1,000 per ounce. Leeds cites a strengthening dollar, a return to equities from security as drivers to bring the prices back down.

"Gold prices will not continue on their current trajectory. In fact, we're looking for gold bullion to fall into the range of $800 to $900 per ounce."

To read the rest of the penny stocks predictions from the Peter Leeds team, visit our free online blog at http://pennystocks.com/blog.htm

Contact Information:
Peter Leeds, Inc.
Tammy Johnson
Tel: 18666953337
Email us


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