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We'll Tell You When It's Time to Tap Tesla

A week ago today, in a strategy story aimed at helping you survive and thrive in today’s whipsaw markets, Chief Investment Strategist Keith Fitz-Gerald told us to put Tesla Motors Inc. (Nasdaq: TSLA) on our “watch lists” for a likely future purchase.

“BP, Tesla is a definite ‘shopping list’ stock,” Keith told me back then. “We’ve been nibbling at it here, and have played it successfully several times. But it’s not yet at the point where I’m ready to jump all the way in. I think my rationale behind Tesla remains upbeat. I mean, you’ve got a real winning combination here – a disruptive sales model, a CEO who’s the most innovative guy on the planet, all the capital in the world that can be brought to bear. I don’t give a rat’s [tail] that New Jersey won’t let the company sell its cars there. There are much bigger opportunities. Wait ’til you see what the company does with China.”

  • Emerging Markets

  • Emerging Markets Consider Capital Controls to Combat "Hot Money" Inflows Concerned with accelerating inflows of so-called "hot money," more emerging market nations are considering new capital controls to keep their currencies from appreciating and prevent asset bubbles from becoming a problem.

    Loose monetary policy in the United States and Europe has flooded fast-growing Asian economies where Western investors are seeking higher yields. India, Taiwan, South Korea, Hong Kong, and Indonesia are among the regions investigating options to combat the rapid inflows of foreign capital that are driving up stock prices, and threatening their export sectors by forcing their currencies to appreciate.

    "With interest rates exceptionally low and with abundant liquidity around the world, Hong Kong faces the potential risk next year that asset prices may go up sharply and become increasingly disconnected from economic fundamentals," the Hong Kong Monetary Authority said on its Web site. Read More...
  • Jeremy Grantham: With Great Depression II Nowhere in Sight, Look to the "Emerging Markets Bubble" for Maximum Profits The good news is that we have not fallen off into another Great Depression. With the degree of stimulus there seemed little chance of that, and we have consistently expected a global economic recovery by late this year or early next year.

    The operating ratio for industrial production reached its lowest level in decades. It should bounce back and, if it moves up from 68 to 80 over three to five years, will provide a good kicker to that part of the economy. Inventories, I believe, will also recover.

    In short, the normal tendency of an economy to recover is nearly irresistible and needs coordinated incompetence to offset it - like the 1930 Smoot-Hawley Tariff Act, which helped to precipitate a global trade war. But this does not mean that everything is fine longer term. Read More...
  • Buy, Sell or Hold: H.J. Heinz Co. (NYSE: HNZ) Is a Long-Term Keeper, but Will Struggle in the Months Ahead H.J. Heinz Co. (NYSE: HNZ) dominates in the ketchup market.  There is no second.  And Heinz has taken advantage of its revered ketchup brand over the years to develop organically and acquire other brands. However, its overdependence on developed markets and a sluggish U.S. consumer are currently holding the company back. Emerging markets are where […] Read More...
  • Emerging Markets Continue to Offer Opportunity Despite Possible U.S. Recession By Jason Simpkins Associate Editor A narrowing trade surplus and declining money-supply growth in China has some analysts worried about the prospects of global growth, particularly as the U.S. economy flirts with the possibility of recession. But the red-hot Asian markets may prove more resilient than many think. China raised its interest rates six times […] Read More...