• This is a partial transcript from "Your World with Neil Cavuto," December 21, 2005, that was edited for clarity.

    DAVID ASMAN, GUEST HOST: Did you ever wish you could see into the future? Who didn't? My next guest actually says he can. He has an unbelievable track record. I was a skeptic here. But this guy has predicted everything from the U.S.-Iraq war, to the decline in the U.S. dollar, to gold going up. And now, with 11 more days until 2006, he has got five key forecasts on how the stock market and the economy is going to do.

    With us now, Henry Weingarten. He is managing director of The Astrologers Fund, The A Fund.

    Good to see you, Henry.

    HENRY WEINGARTEN, MANAGING DIRECTOR, THE ASTROLOGERS FUND: Thank you.

    ASMAN: I was skeptical. But I looked at your track record. It's pretty darn good.

    WEINGARTEN: It is. Yes. We have a good record.

    ASMAN: For example, you said, back in June, that gold was going to hit 500? Guess what? My little gold coins have hit $500...

    (CROSSTALK)

    WEINGARTEN: And it's going higher next year.

    ASMAN: And it's going higher because you see bad times ahead.

    WEINGARTEN: Unfortunately, yes.

    Within 90 days of the eclipse of March 29, the markets will be way down, below 10000 on the Dow, below 2000 on the Nasdaq. You know, there are lots of problems, especially debt problems. And these are going to hit, unfortunately, in the first six months.

    ASMAN: Now, we should emphasize, you just don't base your predictions on the stars. You look at a lot of other things.

    WEINGARTEN: No. I can give you 37 reasons. And we do technical analysis and fundamental analysis.

    But, if you take one, that, on February 1, Bernanke is going to become the Fed chairman, and you look what happened when Alan Greenspan did, when Volcker did. We had a crisis within three to six months.

    ASMAN: But a recession?

    WEINGARTEN: Yes.

    ASMAN: Now, that is pretty bad.

    WEINGARTEN: As we get to 2007, we are going to be under 2 percent next year. And we called the last two recessions. We are going to be under 2 percent growth. And as we get into 2007, we are going to be in a recession...

    (CROSSTALK)

    ASMAN: What is going to cause this? There are causes. There are causes to recessions. It's not just the alignment of Mars and Jupiter, right?

    WEINGARTEN: Well, we have two choices.

    You have the real estate cycle, which is very similar to 1989, coming. So, houses are unaffordable. And if they raise interest rates much more, then a lot of people are going to have to default. And if they don't raise interest rates, the dollars is going to go way down.

    ASMAN: So, people will default. The banks will be stuck with a lot of real estate.

    WEINGARTEN: Yes.

    ASMAN: They're going to default as well. There are going to be bank closures, you think?

    WEINGARTEN: No. I don't think we are going to have that. But it could be the worst in one to two generations, not the worst in three generations.

    ASMAN: All right.

    Top sectors, the Dow is going to be down, you say, by March 29.

    WEINGARTEN: Yes.

    ASMAN: And it's going to be below 10000. Now here are the sectors that are that are going to be doing well.

    WEINGARTEN: Yes.

    But those are things you want to buy afterwards. And we are not saying on March 29. It's actually within 90 days of that time.

    ASMAN: OK.

    WEINGARTEN: But you want to be a little cautious. You want to raise cash. You want to be out of debt as much as you can, as quickly as you can.

    ASMAN: Now, while those sectors may do well, you are not buying anything right now...

    WEINGARTEN: No. We are basically selling. And we want to have the highest liquidity.

    ASMAN: Staying in dollars, dollars and gold?

    WEINGARTEN: Not so much in dollars. You want to actually reduce your dollar exposure -- more international exposure.