Larry D. Spears Archives - Page 4 of 9 - Money Morning - Only the News You Can Profit From
Why Seasonal Trades Are the Solution to Market Volatility
Given all the volatility in the markets of late it might be time to try something with a high probability – though not a guarantee – of paying off.
I'm talking about "seasonal trades."
Seasonal trades are moves you can make in the futures markets, or now via exchange-traded funds (ETFs), that have a history of producing a profit.
Let me explain.
Seasonal trade opportunities arise from patterns that occur at specific times of the year. They are most apparent in the agricultural sector, where changing weather patterns have an impact on prices.
For example, one such seasonal trade – a bullish October sugar play that has posted a perfect record over the past 15 years, producing an average profit of $1,035 per futures contract in seven weeks or less – launched in mid-June.
That particular trade is keyed to the June conclusion of the sugar harvest in Mexico, the last of the year in the Northern Hemisphere. After that, existing stocks of sugar start to decline and prices are subject to weather scares that could disrupt Southern Hemisphere harvests and new-crop growth in the North. As a result, sugar prices typically tend to rise from mid-June through late July.
Four Middle East Investments That Come with Little Risk and Big Potential
As I mentioned yesterday (Thursday) in Part One of this story about Middle East investments, instability makes investing in this tumultuous region fairly tricky. But that doesn't mean you ought to avoid it entirely.
And contrary to the perception of many Westerners, that growth projection isn't based primarily on the price outlook for oil, which has trended higher for most of the past year. Rather, it's keyed to everything from construction and new-business development to banking, tourism and even Internet gaming.
How to Turn a Tidal Wave of Profit From the Global Shipping Industry
The shipping industry plays an indispensable role in connecting consumers with their most cherished goods. But many investors unfamiliar with its inner-workings underestimate its potential as a massive profit generator.
Meanwhile, investors who are aware of its importance, and can track the volatile ups and downs of the companies that provide shipping services, frequently score big gains from its oft-repeating profit opportunities.
To get a quick idea of the enormity of worldwide shipping activity, you need only look at the U.S. trade numbers.
Agricultural Commodities Markets Are Fertile Ground for Profit
However, gold, silver and oil haven't been the only high-flyers. Although they haven't generated nearly as many headlines, agricultural commodities markets also have seen substantial price gains over the past year.
And, given steadily growing supply-demand imbalances linked to a mushrooming global population, upward price pressure in agricultural commodities markets will almost certainly persist for years to come — meaning repeated profit opportunities for investors savvy enough to ride the trends.
Industrial Demand Set to Drive a Rebound in Silver Prices
After a shocking upward climb to nearly $50 an ounce, silver prices have been walloped over the past two days – plunging to $41.50 an ounce in afternoon trading yesterday (Tuesday).
But regardless of this sharp decline, now isn't the time to panic. After all, the U.S. Federal Reserve has given no indication that it plans to tighten monetary policy anytime soon, and as a result the dollar continues to weaken.
That bodes well for all precious metals, which serve well as a store of value. Furthermore, silver has another trump card – its widespread use in industry and manufacturing.
Cash-Rich Companies Share the Wealth with Trillion-Dollar M&A Activity in 2011
Mergers and acquisitions, or M&A activity, so far in 2011 has been a driving force in the stock market's positive performance.
In fact, global M&A activity in the first quarter topped $799.8 billion, the most since 2007's pre-crash frenzy, according to a recent report in Forbes magazine.
MergerInvesting.com, which tracks the M&A market, says 130 deals have either already been closed in 2011 or are currently pending. And, while the total number of global deals is down slightly from the same period in 2010, the actual value of the deals is up more than 55% (with deals involving U.S. companies accounting for 49.6% of that total – a 117% jump from 2010).
Looking forward, most M&A analysts now predict more than $3 trillion in takeover activity for all of 2011.
Pocket Higher Profits By Spotting the Next Takeover Target
Investors lucky enough to hold shares in a company before it's acquired by another can snag some hefty profits – and this year has been one of the hottest on record for deals.
Global merger and acquisition (M&A) activity in the first quarter topped $799.8 billion, the most since 2007's pre-crash frenzy, according to a recent report in Forbes magazine. Looking forward, most M&A analysts now predict well more than $3 trillion in takeover activity for all of 2011.
The question is, how can you spot a likely takeover target before the announcement of a potential deal hits the news?