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How to Rent a Fortune

With a 37% gain in The Blackstone Group LP (NYSE: BX) since late July, we’ve done really well with our targeted investment in real estate.

And with very quick gains of 9% in Brazilian-food processor BRF SA (NYSE ADR: BRFS), 5.2% in South American agricultural play Adecoagro SA (NYSE: AGRO) and 1.6% in high-tech agribusiness player  Neogen Corp. (NasdaqGS: NEOG), we’re doing well with our plays on (pockets of) accelerating U.S. inflation.

Today we’re going to combine the two concepts and employ a very simple formula we believe will add to your profits…

  • Gold

  • Why Gold Beats the Market Manipulators There's one investment that Wall Street manipulators can't touch - and neither can the Fed or the U.S. government. Right now, that investment is gold. Taking a stake in a hard asset like gold may well be the surest way to make some money for yourself despite the shenanigans on Wall Street. Read More...
  • The Five Reasons Gold Will Hit $5,000 Let me get right to the point. Gold's going to $5,000 an ounce.

    I know that sounds preposterous to most people. In fact, some of you probably think I'm crazy.

    But for a whole host of reasons, $5,000 may well end up being a conservative estimate.

    So before you start posting comments that I've gone bonkers, hear me out...

    For more on gold’s looming "superspike," read on...

    Read More...
  • Why Gold Will be the "Greatest Trade Ever" Forget about all the forecasts being made for 2010. Here's my prediction for 2015: An entirely new name - John A. Paulson - will grace the coveted top of the annual Forbes billionaires list.

    And the gap between Paulson and the runner-up billionaire will be huge.

    Everyone knows that Bill Gates and Warren Buffet are America's - and the world's - two richest men. But the financial crisis of 2008 and 2009 was not kind to either of them, eradicating $17 billion of their combined net worth.

    On that famed list, at No. 33, is where you'll find Paulson today. The hedge-fund manager's financial acumen led to what is now being called the "the greatest trade ever." By shorting the subprime mortgage market, Paulson & Co. Inc. generated a $15 billion gain.

    Paulson's personal net worth of $6 billion is impressive in its own right. But over the next several years, I believe that Paulson's trading savvy will vault him into the top spot.

    And the vehicle that will take him there is gold.

    Read More...
  • Investment News Briefs With our investment news briefs, Money Morning provides investors with a quick overview of the most important investing news stories from all around the world.

    GM Hires Former Microsoft CFO; French Drug Maker Buys U.S. OTC Firm; Ford Looks to Reduce Workforce by 41,000; Galleon's Rajaratnam Pleads Innocent; China Backs Out of Investment In U.S. Gold Miner; Gold Falls Amid Interest-Rate Speculation; Recovery Hopes Send Treasury Yield Curve to Record High

    • General Motors Co. hired Microsoft Corp. (Nasdaq: MSFT) Chief Financial Officer Chris Liddell to the same position, GM said yesterday (Monday). Liddell replaces Ray Young, who will be transferred to China as the automaker's vice president of international operations. "Chris will lead our financial and accounting operations on a global basis and will report directly to me," said GM Chairman and Interim Chief Executive Officer Ed Whitacre."We're also looking to his experience and insights in corporate strategy as a member of the senior leadership team in helping our restructuring efforts." Liddell, who already announced his Dec. 31 departure from Microsoft, will begin at GM sometime next month.
    • French drug maker Sanofi-Aventis SA (NYSE ADR: SNY) has agreed to buy U.S. consumer healthcare group Chattem Inc. (Nasdaq: CHTT) in a deal valued at roughly $1.9 billion in cash, or $93.50 per share, a premium of 34% to Chattem's Friday closing price. The deal should give Sanofi a presence in the over-the-counter U.S. drug market. "It looks for me an interesting deal to generate a lot of synergies," Landesbank Baden- W rttemberg analyst Timo Kuerschner, told Reuters.
    • Read More...
    • Buy Sell or Hold: The SPDR Gold Trust ETF Will Rally in 2010, as Recent Dollar Strengthening Loses Steam Gold prices surged to a record high $1226.10 an ounce on Dec. 3, but have since retreated. Meanwhile, the U.S. dollar has been weak for many months, but shown signs of strength in the past week.

      So what's next for the dollar and the price of commodities like gold?

      In order to answer that question we must look at the factors that brought us here: loose monetary policy and government stimulus.

      Read More...
    • Investment News Briefs AOL Goes It Alone; Citi to Pay Back TARP Funds; Jim Rogers: Audit, Then Abolish The Fed; Goldman Sachs Adopts "Say on Pay" Policy; GE Gets Contract for World's Largest Wind Farm; Weekly Jobless Claims Rise, Trade Gap Narrows; Gold Bounces Back; U.S. Households' Net Worth Gains in Q3

      Read More...
    • Despite Recent Pullback, Gold Prices Are Headed Higher By Karim Rahemtulla, Investment Director, Xcelerated Profits Report

      The big news this week is the sudden pullback for gold prices and gold shares. But while the masses scratch their heads in bewilderment, smarter investors know that it had to happen at some point. Nothing goes up in a straight line without pulling back and this correction actually provides welcome respite.

      As for us, we entered the gold market long ago and our positions remain solidly profitable. That's the benefit of using pro strategies to build wealth while mitigating risk and providing a valuable downside cushion.

      For example, our strangle trade on Yamana Gold Inc. (NYSE: AUY) finally has a chance of making us money on the short side, as Yamana's recent decline has led to a rise for our put options. This is good, as this is actually the more difficult side of the trade. Read More...
    • Three Reasons Commodities Prices Will Continue to Soar in the New Year [Editor's Note: This report on commodities is part of our "Outlook 2010" series, which chronicles the global-investing outlook for the new year.]

      In a Money Morning column last December, I predicted that "commodities may be due for a recovery in 2009." It's always nice to be right, but I have to say the move in some commodities has surprised me. Just look at the performance figures for the 12-month period that ended in mid-November.

      When it comes to commodities, most of 2010 will be a reasonably close repeat of 2009. You may think that sounds dull - until you look at the accompanying chart (see chart below) and realize just how much more there is to go.

      Although the rally started at an admittedly low point in January, by mid-November it was very clear that commodities were once again in a major bull market. A few commodities have been left out - coal, natural gas and many foodstuffs have experienced lackluster performance - but many of the others (such as the metals, in particular) have had an exceptional year.

      Read More...
    • Investment News Briefs With our investment news briefs, Money Morning provides investors with a quick overview of the most important investing news stories from all around the world.

      Gold Stretches Record Run; GM CEO Henderson Out; Philly Fed Calls For Interest Rate Hike; U.S. Auto Sales Edge Up in November; Chinese Manufacturing Continues to Expand; U.S. ISM Index Shows Slower Growth; Late Auto Payments in the U.S. Rise; The Clock is Ticking for Saab; Staples' Profit, Revenue Beat the Street Read More...
    • Don't Miss Out on the Looming Gold Bubble Gold was all the rage again last week. But why is it rising, and does anyone really know what it's worth?

      According to the way I calculate momentum, gold has just barely entered the gravity-free zone – where it has the potential to start advancing a lot, with much more fluidity.

      And that translates into much higher prices. Read More...
    • Why Gold Will Reach a Record $2,000 in 2010 Gold has surged 60% in the past 12months and it’s not letting up. The “yellow metal” is continuing that scorching surge into the last part of the year, establishing new highs on a near-daily basis. In fact, gold established yet another record price yesterday (Wednesday) when it peaked at $1,153.40 an ounce on the New York Mercantile Exchange (NYMEX).


      With the U.S. dollar in a freefall and global gold demand rising, analysts say the precious metal will likely continue its bullish trend through at least the first half of 2010. It could rise as high as $2,000 an ounce, which would represent a 73% gain from current record levels. Read More...
    • Warning: You May Not be Making as Much on Gold as You Think Millions of investors who bought gold in the last 12 months are undoubtedly very happy at the moment - considering that the yellow metal has risen 60% since last November to a recent close of $1,138.60 an ounce on Monday.

      But chances are good that many won't be smiling when they discover just what the taxman has planned for their gains.

      Unbeknownst to most investors, gold is considered a collectible not a capital asset. In plain English, this means that despite the fact that many people believe they are investing in gold, the Internal Revenue Service (IRS) believes that they are collecting it. Read More...
    • Investment News Briefs "New" GM to Begin Bailout Repayment; Dollar Drops to 15-Month Low, Gold Continues Record Highs; SEC to Investigate Trading Prior to 3Com/HP Deal; Sprint Pays Down Loan, Stock is Upgraded; Canon to Buy Europe's Largest Printer Maker; Hitachi to Raise $4.6 Billion in Stock and Bond Sale; Cisco Ups Bid for Video Conference Equipment Maker; Millions of U.S. Taxpayers May Unexpectedly Owe, Treasury Says Read More...
    • 7 Reasons Gold Will Surpass $2,500 - And Inflation Isn't One of Them Gold's price has quadrupled since 2000, yet this is just the beginning of a historic rise. Seven major forces are set to push gold past $2,500 – and we’re not talking about the tired old inflation story. Read the full report to find out how to play rising gold prices. Read More...
    • The Index That Thrashed the S&P 500 The Standard & Poor’s 500 Index has zoomed 61% from its March 9 lows, lifting investor spirits and fueling confidence in the U.S. economic rebound. But there’s an even hotter index. This one is up 85% from its late-2008 nadir. And it’s tied heavily to companies that produce gold, silver and other commodities – which […] Read More...