Archives for March 2011

March 2011 - Page 5 of 10 - Money Morning - Only the News You Can Profit From

Japan Update: How to Proceed in the Wake of Japan's Tragedy

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Japan's earthquake-ignited nuclear crisis has gone from bad to worse.

Radiation levels at the Fukushima Daiichi nuclear plant rose today (Thursday) as attempts to cool the stricken reactor with high-pressure hoses failed. The No. 3 reactor's spent fuel rod pool is overheating and could release dangerous amounts of radiation into the atmosphere.

Sadly, the nation's death toll already has climbed above 5,300, with many more missing or in danger. And analysts now estimate that the direct monetary costs from Friday's 9.0 magnitude earthquake and tsunami will range from $160billion to $200billion.

Indeed, the early reports forecast that the disaster could trim the output of Japan's $5.39 trillion economy by half a percentage point – which would add another $25 billion to that tab.

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Money Morning's Fitz-Gerald on Global Implications of Japan Disaster

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Fears of a nuclear catastrophe in Japan caused the Nikkei 225 Index to suffer its worst two-day losses in 25 years this week, but stocks rallied back 5.7% today (Wednesday). The Dow Jones Industrial Average fell 242 points today to close at 11,613.30. Money Morning Chief Investment Strategist Keith Fitz-Gerald joined FoxBusiness' "Bulls & Bears" […]

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Tips For Hedging Silver

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Gold has gotten a lot of attention recently, as the yellow metal earlier this month rose to yet another record high. However, gold's little brother – silver – shouldn't be forgotten.

Although gold has garnered most of the headlines – thanks primarily to its historic role as a hedge against both inflation and the political turmoil – silver has actually turned in a far more impressive performance since mid-2010.

In fact, the silver futures contract calling for May 2011 delivery – traded on the Comex division of Chicago's CME Group Inc. (Nasdaq: CME) – has risen more than four times as much as gold over the past seven months.

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Hidden Inflation: Why Prices Are Rising Faster Than You Think

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Rising prices are hitting U.S. consumers a lot harder than the U.S. Federal Reserve – or the U.S. government – would have us believe. The government-issued consumer price index (CPI) for January showed that "core inflation" – which includes prices for all items except food and energy – was up only 1% from the same month the year before.

By excluding food and energy prices, as volatile as they may be, the CPI fails to convey the pain that rising prices are inflicting on American households. Indeed, some economists have claimed that the true rate of inflation is closer to 8% or 9%.

To get a true picture of the current inflation situation – and to understand its impact and potential dangers (as well as several investment opportunities) – Money Morning Executive Editor William Patalon III sat down with Chief Investment Strategist Keith Fitz-Gerald for a question-and-answer session on the topic.

For three inflation-fighting investments, please read on….

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Video Streaming Giant Netflix Downloads Bold Strategy for Growth

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Already dominant in video streaming, Netflix Inc. (Nasdaq: NFLX) is determined to drive its business into fresh territory. The company plans to acquire its own content with a deal for the U.S. rights to a television series, and will expand its reach to new countries in 2012. Netflix has enjoyed extraordinary success over the past […]

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Latin America Looks to Strengthen U.S. Trade Relations and Step Back From China

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The United States has long referred to Latin America as its "backyard", and held a strong economic influence on its southern neighbors.

But someone else is moving in.

China's trade with Latin American countries has surged over the past few years, weakening the region's economic relationship with the United States. Now some of those nations – especially Brazil – want to strengthen U.S. ties to reduce their dependence on the world's second-largest economy.

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Special Report: How to Invest in the Wake of the Japan Disaster

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Japan's earthquake-ignited nuclear crisis got even worse early today (Wednesday), igniting major losses in stock markets around the world as analysts came to terms with both the spiraling costs of the disaster and the spinoff effects that continue to surface. The official death toll approached 4,200, with thousands more still missing, NHK World/Radio Japan International […]

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Japanese Earthquake Impact: How to Play the Post-Disaster Currency Moves

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According to Biriniyi Associates, investors threw more than $1 billion into Japanese exchange-traded funds (ETFs) last month – second only to U.S. energy funds and more than agriculture, large-caps and mid-cap stocks combined.

They couldn't have placed their bets at a worse time.

Amidst fears of multiple nuclear meltdowns, the benchmark Nikkei 225 Index plunged 10.55% yesterday (Tuesday) after a 6.2% decline on Monday – a two-day decline of 17% since Friday's devastating 9.0-level earthquake and tsunami. More than $650 billion in shareholder wealth has been vaporized.

As a veteran trader and longtime expert on Asia, it's a story that I've heard countless times: Japan was supposed to regain what it once had – a vibrant economy that helped lead the world in the years following World War II, and that finally achieved global dominance in the late 1980s.

Somehow, however, that never happened. But it didn't discourage the believers.

To understand how to protect yourself from the looming currency backlash, please read on...