April 2010 Archives - 10/10 - Money Morning - Only the News You Can Profit From
The Economic Recovery is Real & Investors Should Get on Board…Now
After taking a beating in the Great Recession, the U.S. economy has turned the corner… Here are three reasons economic growth will exceed expectations in 2010, and a surefire way to profit.
China, Europe Lapping the United States in the Clean Energy Race
If the United States doesn't take drastic measures to engineer new clean energy policies and investment initiatives, it will continue to take a back seat to China and Europe, which are driving the clean energy market toward a profitable future.
Both clean energy companies and a skilled workforce are heading overseas, where government policies are creating a more welcoming and promising market for clean energy products.
Take Massachusetts-based Evergreen Solar, Inc (Nasdaq: ESLR). In 2008, it used $58 million in government aid to open a new Massachusetts factory to build silicon wafers and cells and assemble solar panels. But in November 2009, it announced the assembly of solar panels would be moved to Wuhan, China, where solar panel manufacturing will cost far less than in the United States.
What's Really Driving Obama's Sudden Interest in Oil
U.S. President Barack Obama generated a lot of hubbub with his decision to open up parts of the Atlantic Ocean and Gulf of Mexico to oil drilling.
We've all heard the criticisms that some of the geological surveys are as much as 30 years old, and the arguments that the ecological impact of drilling off the U.S. East Coast isn't worth the accessible oil, which some critics estimate could play out in as little as six months at current demand levels.
But even after more than a day of debate over the motivations for – and possible results from – President Obama's apparent energy policy about-face, one thing is very clear: This announcement has nothing to do with oil.
It's all about the U.S. dollar.
- Money Morning Mailbag: Are We Headed for Over-Regulation?
Will America Choke on its Own Debt?
Is America getting in too deep?
According to a new estimate by the Congressional Budget Office (CBO), if the United States continues along its current path, U.S. public debt will reach 90% of the nation's economic output by 2020.
Given that federal debt has already zoomed to 53% of gross domestic product (GDP), this projected additional escalation seems outrageous.
Unfortunately, it's only a piece of the story.
China Manufacturing Data Could Presage a Rising Yuan
Manufacturing activity in China and much of Asia continued to expand in March, underscoring the region's role as a driving force in the global economic recovery.
China's official Purchasing Managers' Index (PMI) rose to a seasonally adjusted 55.1 from 52 in February, according to Li & Fung Group, a Hong Kong-based company that releases data for the Federation of Logistics and Purchasing. It marked the 13th straight month the index showed expansion and was in line with the median estimate in a Bloomberg News survey of 13 economists. A reading above 50 indicates growth.
Another PMI for China released by HSBC Holdings PLC (NYSE ADR: HBC) was even more positive, showing a rise to 57.0 in March from 55.8 in February.
- Turning the Corner On Unemployment?
Three Ways to Profit From an Insurance-Sector Rebound
Regional banks, investment bankers and insurance companies will be key winners in the next phase of an advance that will be characterized by very lukewarm participation by the average private investor.
Most investors will be surprised by this turnabout – and especially by the insurance-sector rebound.
Let me show you three ways to profit.
United States Lifts Oil Drilling Ban to Reduce Foreign Energy Dependence
President Barack Obama announced will lift a 20-year ban on offshore oil and natural gas drilling and exploration, hoping to create jobs, generate revenue and reduce the United States' dependence on foreign oil.
Obama and Interior Secretary Ken Salazar released a detailed plan to allow drilling off the Atlantic coast, eastern Gulf of Mexico and north coast of Alaska, provided coastlines are protected. Environmental concerns about the possibility of oil spills initially caused the drilling ban. Drilling would still be prohibited from New Jersey northward, on the Pacific Coast and in Alaska's Bristol Bay.
The plan aims to bolster the United States' ability to supply its own energy, but also acknowledges the need to move toward clean energy policies and protect natural resources.
Playing 'Follow the Guru' Can Be Fun – and Profitable – for Investors
If you wanted to distill all the world's best investment advice into a single sentence, it would probably come down to this: Follow the leader.
In short: Follow the guru. That's not just a clever phrase. In fact, if you picked any of the investment world's living legends and copied what they did, odds are you'd be pretty successful over time, regardless of the general market environment during any given short-term period.
We've whittled the investing wisdom of these three stalwarts – and others – into 15 rules to live by. We offered the first five rules in Part I of this story, which appeared yesterday (Wednesday). Here in today's second installment, we offer the final 10 rules.