Archives for September 2010

September 2010 - Page 7 of 9 - Money Morning - Only the News You Can Profit From

Investing in Canada: The World's Safest Economy

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I've said it once, and I'll doubtless say it a few dozen more times before the U.S. economy returns to health: Just because you have to endure recessionary conditions doesn't mean that your money has to.

That's the argument I make when I urge Americans to search for investments outside U.S. borders. Ironically, your money doesn't have to travel all that far: What's arguably the world's "safest economy" is actually located just north of the border.

I'm talking, of course, about investing in Canada.

For the five ways to profit from Canada, please read on...

July's Narrowing Trade Gap Lifts Hope for U.S. Economic Recovery

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The United States in July posted the biggest drop in its trade deficit in 17 months, as imports plunged and exports shot higher, according to a government report that could lift hopes for the economic recovery.

The U.S. trade deficit narrowed by 14% to $42.78 billion from a downwardly revised $49.76 billion the month before, the Commerce Department reported yesterday (Thursday).

U.S. exports expanded 1.8% to $153.33 billion – the highest level since August 2008 – from $150.57 billion in June. Imports registered their biggest decline since February of last year, falling 2.1% to $196.11 billion from $200.33 billion in June.

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China Ousts U.S. as Most Attractive Market for Renewable Energy Investing

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China for the first time has overtaken the United States as the most attractive country for renewable energy investment, according to a quarterly index ranking released yesterday (Wednesday) by accounting firm Ernst & Young.

As the world's biggest energy consumer, China set a goal to generate 15% of its electricity from renewable sources by 2020 – up from 9% in 2008 – and has been encouraging investment in its clean energy companies to make its target.

"China has all the benefits of capital, government will, and it's a massive market," Ben Warren, Ernst & Young's environment and energy infrastructure leader, told Bloomberg. "We would expect to see China retaining a dominant position."

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Brazil's Shifting Fortunes: This BRIC Economy is Ready to Fall Out of Fashion

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Batten down the hatches. Brazil, the media-darling of the world financial press and the poster child for emerging-markets investing, is heading directly into the eye of the storm.

Until now, Brazil has provided investors with a thoroughly rewarding run. Investors who followed Money Morning's October 2008 call to buy the iShares MSCI Brazil Index (NYSE: EWZ) have notched a 160% return.

But with this BRIC country now clearly running into trouble, it's time to trim any holdings you may have.

Here's why…

To see how Brazil is setting itself up for a fall, please read on...

Obama Stimulus More About Politics Than Jobs

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U.S. President Barack Obama yesterday (Wednesday) finished unveiling of a $350 billion stimulus package that the White House hopes will assuage the fears of troubled homeowners and create jobs. But with midterm elections looming and Congressional Democrats expected to sustain heavy losses, it's unlikely the plan will even get passed – much less generate any meaningful economic growth.

Indeed, the true aim of Obama's new stimulus is to put Republicans in a difficult position.

"The president has changed the conversation from whether to renew or terminate President Bush's tax cuts to his own tax-cut agenda, and is promoting a couple of business-friendly proposals that Republicans have previously promoted," David Wessel wrote in The Wall Street Journal. "So Republicans either oppose them, and look hypocritical, or back him: a win-win for Democrats."

Obama's new proposals employ a front-loaded approach with tax cuts to spur business spending and infrastructure projects to promote job creation.

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Two Asian Economies Flying Under the Radar

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You know about China, India, and maybe even Korea, but there are two other Asian economies making waves in the South China Sea.

I'm talking about Singapore and Thailand.

While the U.S. economy would be really lucky to poke along at a 3% annualized rate this year and next, the fast-growing countries on the other side of the globe are ripping higher.

Regional analysts surveyed by Bloomberg News survey said they see Singapore expanding at a record pace this year of 14.9% due to improving demand for the city-state's exports. That's up from an estimate of 9% published three months ago. Singapore's economy relies on trade, finance and tourism. Its central bank said the surge would be led by a 29% expansion of manufacturing.

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Investing in Silver: Three Ways to Profit From the Projected Breakout

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It's the last major commodity to enjoy a true price breakout, and it's already doing so in a foreign currency.

This commodity has yet to break out in U.S. dollar terms, although its breakout in India is a signal that it's time for U.S. investors to make their move.

I'm talking, of course, about silver.

Silver is trading at just under $20 an ounce right now. I think it could hit $50 an ounce by the 2012 presidential election, which would represent a 150% move from here.

Clearly, the "white metal" can be a major profit center for your portfolio during these uncertain times. Let's look at the strategy that I've put together for you to reap that gain.

For a look at the author's detailed silver strategy, please read on…

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Question of the Week: Government Intervention in the U.S. Housing Market Does More Harm than Good

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Experts fear that the already-battered U.S. housing market is getting ready to stall again, leaving the Obama administration to decide what – if anything – it should do next.

Standard & Poor's Case-Shiller Home Price Indices reported last week that home prices rose 3.6% in the second quarter from a year earlier – but the boost came from the first-time homebuyer tax credit that expired in April. And that doesn't bode well for the housing market's near-term outlook.

"The numbers were inflated by the homebuyer tax credit," David Sloan, a senior economist at 4Cast Inc. in New York, told Bloomberg. "The numbers will be going down in the coming months. We could see some significant declines."

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We Want to Hear From You: How Do You Feel About the U.S. Government's Proposals to Boost Employment?

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The U.S. unemployment rate has hovered around 10% for months – with no real signs of improvement. As American workers grow increasingly impatient, the U.S. government is running out of options to help the job market.

But with midterm elections approaching, U.S. President Barack Obama is trying to show voters there's hope in resolving the stubbornly high unemployment rate. On Monday, he unveiled a six-year infrastructure plan that would invest billions in transportation projects and create a "substantial" number of jobs.

The government would supply $50 billion off the bat to rebuild 150,000 miles of roads, 4,000 miles of rail and 150 miles of runway, plus modernize the air traffic control system. The plan also sets up a government-run infrastructure bank to finance the projects, combining tax dollars with private investment for funding.

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Obama Floats $350 Billion Stimulus Package to Re-Ignite Economy

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Faced with pre-election polls showing strong Republican support leading up to the mid-term elections in November, President Barack Obama is floating a $350 billion stimulus package designed to assuage the fears of troubled homeowners and create jobs.

In another move aimed at stabilizing a shaky economic recovery, the president today (Wednesday) will officially unveil a new $200 billion tax cut that gives businesses across the country incentives to buy new equipment, an anonymous administration official told CNN.

The proposal would be in addition to a $100 billion permanent extension of the business tax credit for research and development, as well as a $50 billion six-year program to fix roads, railways and runways and modernize the air-traffic control system.

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