Archives for January 2011

January 2011 - Page 4 of 10 - Money Morning - Only the News You Can Profit From

Canadian Stock Market Attractive Escape From Falling U.S. Dollar

Investors are warming up to the U.S. stock market in the New Year, eager to get in on gains they missed while cautiously sitting out 2010. But anxiety hasn't totally evaporated, as fears over the declining U.S. dollar raise questions about the safety of U.S. equities.

The U.S. Federal Reserve likely will maintain interest rates near zero and continue its quantitative easing policy, contributing to the greenback's weakness.

"I fully expect the dollar to continue to disintegrate in 2011,"said Money Morning Chief Investment Strategist Keith Fitz-Gerald.

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European Debt Crisis: How to Profit No Matter What Happens

Since the European debt crisis first emerged in early 2010, it has dominated headlines, roiled the world financial markets, and has kept investors in a perpetual state of alert as they wait for the next shoe to drop.

But let me share with you a little-known secret: Investors who understand where the "fault lines" are forming in this Eurozone debacle can transform the biggest sovereign-debt crisis in years into a major profit opportunity.

Let me explain…

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For the one investment that will let you profit from the EU debt crisis, please read on..

China Monetary Policy: Inflation Won't Last - Growth Will

Investors yesterday (Thursday) were rattled by fears that China's economy is overheating after it was revealed that the country's gross domestic product (GDP) expanded by 10.3% in 2010.

However, the policy changes that will come as a result of the data ultimately will benefit both China and the United States.

No doubt, inflation will remain problematic for China in the short-term, but policymakers are poised to respond with tighter lending controls and an appreciation of the nation's currency, the yuan. That will help tame a politically sensitive trade surplus with the United States and ensure more stable growth for the world's second-largest economy.

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GE China Deals to Bring in $4 Billion

General Electric Co. (NYSE: GE) this week announced it would sign a series of deals with Chinese partners in energy, rail, and aviation as it strives to increase its presence in the burgeoning Chinese market. The announcement coincided with a four-day state visit to the United States by Chinese President Hu Jintao. The deals could […]

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The Only Investment "Forecast" You'll Need for 2011

If you look around these days, just about every investment, finance or business publication – in print or on the Web – claims to have a "forecast" issue for the New Year. These forecasts are typically billed as investment roadmaps: The publication promises that if you follow their instructions to the letter, you'll end up […]

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Luxury Brands Are Back In Style as America's Wealthy Return to Their Wears

The U.S. unemployment rate may still be high, but that hasn't stopped consumer spending from rallying. And in contrast to the darkest days of the financial crisis, when discount retailers like Family Dollar Stores Inc. (NYSE: FDO) and Wal-Mart Stores Inc. (NYSE: WMT) ruled the day, luxury brands have been doing the heavy lifting.

Indeed, bolstered by the extension of the Bush tax cuts and strong demand in Asia, luxury brands are coming back into style.

LVMH Moet Hennessey Louis Vuitton SA (PINK: LVMHF), Burberry Group PLC (PINK: BURBY) and Hermes International SCA (PINK: HESAF) will lift revenue at least 9%, according to estimates compiled by Bloomberg.

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Investing in Germany: The Closed-End Fund to Buy Now

U.S. investors tend to regard the European Union as a region of low growth, an area of the world that has little to offer to non-EU investors.

For much of the EU, this is true (I've never found much of anything that's investment-worthy in Italy, for example).

Overall, however, this anti-EU sentiment is pretty unfair.

In fact, it's now becoming increasingly clear that even U.S. investors would be mad not to have some of their money in Germany.

To discover the one way to profit on Germany's resurgence, please read on...

The Mosiac Co. (NYSE: MOS) Eyed As Takeover Target in Sought After Food Industry

Agribusiness leader Cargill Inc. on Tuesday announced it plans to spin off its $24.3 billion stake in fertilizer giant The Mosaic Co. (NYSE: MOS), making Mosaic an attractive takeover target as rising global food prices push more companies toward the agricultural sector.

Cargill, the largest privately held U.S. company, wants to distribute its 64% stake in Mosaic to diversify its family trust holdings and keep the business private. Cargill plans to distribute its 286 million Mosaic shares to Cargill shareholders and debtholders. The plan allows for the shares to be sold on the secondary market after a certain amount of time.

Mosaic Chief Executive Officer Jim Prokopanko said his company is well positioned to take advantage of this deal.

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Weekly Options: A More Flexible Way To Target Profits and Maximize Leverage

Standard options have long offered a more flexible way to invest. But a relatively new product called Weekly Options, or "Weeklys," gives investors an even more efficient way to use leverage and target profits.

Weekly options have the same terms as standard options, except they expire every Friday instead of every third Friday.

In other words, you can now trade options on a select group of underlying assets that have expiration dates every week of the year. To be precise, they're first listed on Thursday of each week and expire at the close of trading on Friday of the following week (adjusted for holidays).

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