Archives for May 2011

May 2011 - Page 7 of 9 - Money Morning - Only the News You Can Profit From

The Next Commodities Bubble ... It's Coming Sooner Than You Think

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To hear the mainstream media tell it, the commodities bubble has burst.

Commodities are plunging across the board in response to the latest U.S. data, most of which seems to suggest that the American economic recovery is waning. Oil, which traded down to $94.63 on Friday, was particularly hard hit, which is why so many suggest the commodities bubble has met its end.

Don't you believe it.

Commodities prices will be back. In fact, 12 months to 24 months from now, gold, silver and other commodities will be trading at higher prices than they were just a few weeks ago – when they were trading at record levels.

To see three investments to make now, please read on…

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Buy, Sell or Hold: ConAgra Foods Inc. (NYSE: CAG) Turning Up the Heat with Takeover Bid

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With inflation soaring around the world, food prices are surging. And mergers and acquisitions (M&A) among food producers have increased as a result.

At the forefront of this trend is ConAgra Foods Inc. (NYSE: CAG), which last week made a bid for Ralcorp Holdings Inc. (NYSE: RAH).

Ralcorp twice rejected ConAgra's overtures, but the maker of Slim Jims and Swiss Miss cocoa won't be deterred.

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The Commodities Bubble Hasn't Burst - It's Just Taking a Breather

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Panicked investors retreated from silver, oil and copper this week, leading many to believe the commodities bubble had finally popped – but experts say this bull market will pick up again.

The Standard & Poor's GSCI Index that follows 24 raw materials fell as much as 11.4% in five days, the longest losing streak since August.

Some analysts believe concerns about a weakened economic recovery have spurred investors to take their commodity profits. However, others say this price slip is fear-driven and short term, and that key reasons to believe in a commodities bull run still exist.

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Life After the Silver Mania: Where Silver Prices Go From Here

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With the demise of the "silver mania" we've seen in the past week, I thought it was time to take a closer look at where silver prices will likely go from here.

I first recommended silver to Money Morning readers back in September — with silver trading at $19 and change – and along with that "Buy" call to readers I gave a $50 price target.

Back in mid-April, when we had our roundtable conversation on silver, this "other" precious metal had been trading in the $42 to $43-per-ounce range.

Please read on...

2011 Silver Prices Forecast: How To Find The "Greatest Trade Ever"

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Silver is better than gold. In fact, it's poised to be the "Greatest Trade Ever." I know that's a big statement. I'm certain that it grabbed your attention. Perhaps you're even considering arguments that would shoot it down. But I know what I'm saying. And here's the proof. You can look at silver prices and […]

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U.S. Credit Growth: Is Anemic Lending an Early Sign of a Double-Dip American Downturn?

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In spite of five straight quarters of loosening lending standards and strong U.S. credit growth data, actual loan growth in the U.S. economy is dangerously anemic.

What isn't apparent to investors is that the reason first-quarter gross-domestic-product (GDP) growth fell to 1.8% from the fourth quarter's more robust 3.1% rate is that loans and leases – which accounted for as much as 51.2% of U.S. GDP as recently as 2008 – fell to 45% of GDP in March.

Behind the headlines about positive credit trends, the truth is that weak loan demand will continue pressuring GDP growth and put a lid on some rising U.S. stock prices.

This underscores yet again how important so-called "capital waves" can be, why we need to watch them – and how we can employ them for profit.

To understand the "truth" about U.S. credit growth, please read on…

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Hot Stocks: General Electric Co. (NYSE: GE) Creates New Business Focus to Rise from Recession

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General Electric Co. (NYSE: GE) started 2011 with a better-than-expected earnings report, showing its redirected business is gaining momentum after being hit hard by the financial crisis.

GE has been shifting its focus to emerging market growth, oil services and energy demand to reduce reliance on the volatile financial services sector – and those moves are paying off.

GE beat expectations with first-quarter earnings of $3.4 billion, or 31 cents a share, up 48% from a year earlier. This was the fourth consecutive quarter in which GE grew its earnings.

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Copper Price Forecast: Why the Red Metal is on a Long-Term Bull Run

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With metals and commodities on a long-term bull-market run, investors have recently turned their attention to copper.

The red metal's price recently has fallen due to mixed economic data. Copper's use as an industrial metal – it's widely used in buildings, electronics, appliances and automobiles – makes it sensitive to economic growth prospects.

But despite the recent dip, many analysts and industry experts have a bullish copper price forecast.

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China's Economy Continues to Ascend – But Watch Out for Speed Bumps

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Everyone knows that China's economy is hot. The only question is whether it may be a little too hot.

China posted yet another quarter of stellar economic growth in the first quarter of 2011, with its gross domestic product (GDP) growing 9.7%. However, analysts are worried about some of the side effects that have accompanied that growth- namely soaring inflation and the emergence of speculative bubbles.

Inflation in China hit a 32-month high in March, and the country's real estate market is beyond scorching.

Policymakers in Beijing insist they have the situation under control, and they've been trying to rein in liquidity and curb speculation to prove it. That's why China's economy, accustomed to double-digit growth, is only expected to grow 8% to 9% this year.

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The Silver Bull: Despite This Week's Sell-Off, We See Higher Prices Ahead

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After watching silver's wild and relentless climb since last August, some high-profile investors have started taking profits.

That's caused silver prices to correct about 20%, down from $48.70 to $39.05 intraday yesterday (Wednesday).

Does that mean the silver bull market has peaked?

In a word: No.

Don't misunderstand: We could still see additional declines in the price of silver.

After that, however, we can bank on the silver bull resuming for the very simple reason that we can identify the three specific factors that have caused silver prices to fall. And all three of those factors are as rational as they are finite.

To see why we expect the silver bull to resume, please read on...