To pay the interest on this debt and finance even more massive bailout plans, Hank Paulson will order the Treasury Department to crank up its printing presses to an unprecedented speed.

The consequences: At some point in the near future, the flood of newly created dollars is going to send inflation and long-term interest rates to the moon.

Your opportunity: Consider inverse bond funds that actually increase in value when interest rates are rising, such as the Rydex Inverse Gov Long Bond Strategy Inv Fund (RYJUX) or the ProFunds Rising Rates Opportunity Fund (RRPIX).

Powerful Trend #4 —
Commodity Prices, Including Energy, Will Be Higher 12 Months From Now …

I used to spend $100 filling up my full-size SUV. So I appreciate falling energy prices as much as anybody. But I don’t expect low prices to last for long.

The growing emerging market economies and the other supply/demand factors that sent oil prices to $150 earlier this year are still in force today. Perhaps not at the previous gangbuster pace, but certainly at a pace that is enough to steadily push commodity prices higher over time.

Your opportunity: The price of natural resource and energy stocks are down — way, way down. And companies with solid, tangible assets will be among the best performing stocks to own in the coming years.

That’s why this is the time to start accumulating shares in commodity kings like Barrick Gold (ABX), Archer Daniels Midland (ADM), CNOOC Ltd. (COE), BHP Billiton (BHP), and Cameco (CCJ).

Powerful Trend #5 —
Asian Markets Are Headed Lower. But Will Bounce Like A Superball …

I don’t care what part of the world you pick — Europe, North America, South America, or Asia — the short-term outlook is not good. The long-term outlook varies greatly around the globe.

And right now, it’s the brightest in Asia in general, and China in particular, where I expect the rebound to be very powerful.

The Chinese economy is a multi-decade story. And there will be plenty of ‘ten baggers’ to be found amidst the beaten down diamonds.

Your opportunity: Take advantage of any dips to add quality Asian stocks — like New Oriental Education (EDU) and China Mobile (CHL) — to your portfolio.

The bottom line of my end-of-the-year message: Success in 2009 will require both caution and guts …

Caution to keep your portfolio intact and to raise cash whenever possible. And the guts to buy when things seem the worst.

Best wishes for 2009!