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The Winners and Losers in the 'Commodities New World Order'

By , Global Investing Specialist, Money Morning -

In the "commodities new world order," commodity producers will be king.

Investors who need proof need only consider recent events. Iron ore prices are at record levels, and the annual-price-setting arrangement has broken down. Venezuela President Hugo Chávez has signed "dark side" agreements with Russian Prime Minister Vladimir Putin for Russian companies to develop Venezuela's oil-and-mineral resources. China may have invested $1 trillion or so in U.S. Treasuries, but the Asian giant's only truly successful investment so far has been the 17% stake it took in Canadian-resources player Teck Resources Ltd. (NYSE: TCK).

Welcome to the commodities new world order. These events serve notice that - as we put the global financial crisis behind us - the commodity "haves" will set the agenda ... while the commodity "have nots" will fall farther and farther behind.

To discover the identities of the new-world-order winners – and losers – please read on...

India and Brazil Join U.S. in Pressuring China to Let Yuan Appreciate

By , Contributing Writer, Money Morning -

President Barack Obama's efforts to pressure China to let the yuan appreciate gained momentum Thursday when the central bank presidents of Brazil and India both spoke out against China's exchange rate policy. Speaking ahead of a Group of 20 (G20) meeting scheduled for this weekend in Washington, the Indian and Brazilian central bank heads surprised […]

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World's Factories Manufacturing at Record Rates, Fueling Global Economic Recovery

By , Contributing Writer, Money Morning -

The world's factories are churning out products at record rates, fueling the global economic recovery at a faster pace than thought possible just a few months ago.

The latest figures show factory output is growing at a record rate from the United States to China to Europe and beyond. And as manufacturing expands, economists expect the world's economies to continue to expand, creating jobs and putting money in consumer pocketbooks.

As long as companies have plenty of cash to finance expansion, output from the world's factories should continue to grow, according to Money Morning Contributing Writer Shah Gilani, who recently launched the Capital Wave Forecast, a new trading service based on capital flows.

Recent surveys show U.S. companies are sitting on almost $1 trillion in cash.

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With a 183% Gain on Ford Motor Co.'s Shares, This Money Morning Stock Pick Was Truly a "Better Idea"

By , Executive Editor, Money Morning • @privatebrief -

In late 1968, one of America's "Big Three" automakers adopted the slogan: "Ford has a better idea."

In July 2008, in his weekly "Buy, Sell or Hold" column, Money Morning's Horacio Marquezhad a better idea of his own: Buy Ford.

Investors who took heed of that advice have done quite well - Ford Motor Co. (NYSE: F) shares have soared more than 180% since they were recommended on July 28, 2008, at $4.75 a share. Ford's stock closed Thursday at $13.45 - for a gain of 183%.

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Buy, Sell or Hold: BHP Billiton is Poised to Pick Up Big Gains on the Back of a Global Commodities Bull

By , Contributing Editor, Money Morning -

Face it, commodity prices are in a secular rally - and there are three big reasons why.

  • Loose Monetary Policy
  • Growing Demand in Emerging Markets
  • And the Congruent Devaluations of Major CurrenciesWe've already profited from this inflationary trend in the Money Map VIP Trader.  And - just like I did with the broadband revolution - today I am presenting you with a stock that stands to benefit from these developments - BHP Billiton Ltd. (NYSE ADR: BHP).
First, let's talk about policy. Immediately following the 2008 financial crisis, the Group of 20 (G20) countries agreed to stimulate their economies simultaneously.  And, while the emerging economies almost unanimously have already returned to strong rates of growth, most advanced economies are just now turning the corner.

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U.S. Loses Crown as King of M&A to Emerging Markets

By , Contributing Writer, Money Morning -

Maybe U.S. investment bankers are losing their touch.

For the first time since Thomson Reuters began keeping track in 1976, fewer merger and acquisition (M&A) deals were done in the United States in the first six weeks of 2010 than in emerging-markets.

During that stretch, emerging markets such as India, Mexico, Brazil and China accounted for 43% of global M&A volume with $91.2 billion worth of deals. That outpaced the United States, which completed roughly $55 billion in deals, accounting for a 29.5% share.

Surprisingly, Mexico alone did more volume, with 19.1% of the market versus Europe's 17.1% share.

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The Scramble for Africa: Profiting From World's Largest Cache of Commodities

By , Managing Editor, Money Morning -

In the quarter century stretching from the late-1880s to the First World War, there was a mad rush by the world's leading powers to occupy and annex African territory. Now, 100 years later, the world's elite again are scrambling to make their respective marks on the continent.

The methods of extraction have changed, but the end goal remains the same - to gain access to Africa's coveted bounty of commodities.

Most notably, Chinese interests have swarmed Africa, constructing roads, rail lines, municipal buildings, schools, ports, and pipelines in exchange for access to natural resources.

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India Says Economy Will Grow by 8.75% This Year, but Obstacles Remain

By , Contributing Writer, Money Morning -

The Indian economy will grow by as much as 8.75% in the coming fiscal year, the country's finance ministry predicted on Thursday. But concerns about inflation and a growing deficit have some analysts worried.

The annual Economic Survey released in parliament yesterday (Thursday), one of New Delhi's most important policy documents, said Asia's third largest economy will return to a high rate of growth as it stages a "remarkable recovery" from the global recession. Economic growth this year is estimated at about 7.5%.

The comprehensive annual assessment of India's economic performance was released a day before the government is scheduled to reveal its national budget, which is widely expected to outline policy changes to wind down fiscal stimulus measures and reduce the country's worst deficit in 20 years.

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Despite India's Optimism, There May Be a Better Time to Buy

By , Global Investing Specialist, Money Morning -

The Indian government announced Monday that the country's economy was expected to expand by 7.2% during the fiscal year that ends next month.

Agriculture - which had been expected to be a major drag on the economy because of a poor monsoon season - contracted a mere 0.2%. That is a truly stellar performance, showing that India - like China - has emerged almost unscathed from the global economic meltdown. It would pretty well justify the Bombay Stock Exchange Ltd.'s rich Price/Earnings multiple of 20 and would make Indian stocks a "Buy" even at these levels.

Unfortunately, when looked at closely, the picture is not quite so rosy.

Is India a "Buy" now -- or later? Read on to find out...

Is India a "Buy" now -- or later? Read on to find out...

Eight Ways to Profit From the World's Biggest Spending Boom

By , Contributing Writer, Money Morning -

Back in the 1970s, environmentalists feared we were going to "blacktop the Earth." It's not likely that will ever happen. However, governments around the world do have plans to pave a good portion of it in the decade to come. And they also plan to build bridges, power plants, water systems, and to develop other infrastructure projects that will bolster the global recovery and meet the needs of an increasingly modern global population.

What's more, the projected pace of new infrastructure spending is accelerating, meaning there's still plenty of time for new investors to climb aboard - and profit from - the trend.

Just a year ago, an analysis by CIBC World Markets (NYSE: CM) predicted worldwide government spending on public works projects would total $35 trillion over the next 20 years. By the middle of 2009, a number of analysts - reviewing projected demands in the commodity and raw materials markets - had raised that forecast to $40 trillion, with nearly $4 trillion of that coming in 2010 and 2011 alone.

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How to Profit in Any Kind of Market

By , Chief Investment Strategist, Money Map Report • @kfgtotalwealth -

When it comes to the global financial crisis, many so-called "experts" think the worst is behind us. But I don't buy it.

And I'm not alone.

Just look at what some other big-name investors - each also known for their independent thinking - are saying or doing right now:

  • Bond king Bill Gross is nervous and raising cash.
  • Author, commentator and global-markets guru Jim Rogers has repeatedly said that he's not investing in stocks anywhere in the world right now.
  • Hedge-fund heavyweight John Paulson is moving aggressively into gold.
  • And investing icon Warren Buffett - never one known for tipping his hand - is candidly stating that the U.S. financial-crisis cleanup is far from complete. The fact that he's reportedly buying more shares of Korean steel dynamo Posco (NYSE ADR: PKX) would punctuate this point.
Indeed, entire nations - I'm thinking specifically of China, India, Brazil, Chile and one or two others - are adopting similar stances. And they're doing so for the same risk-fearing reasons. They want to grow their money but they don't want to place it at risk any more than we do.

This kind of uncertainty can be paralyzing, making it tough to decide where - or even if - we should deploy our investments.

Fortunately, we've been here before. And what we learned will allow us to profit no matter what the financial future holds for the U.S. marketplace.

To learn the four secrets to investing success, please read on...

Two Ways to Profit From Wall Street's "Soft Commodity" – Cotton

By , Contributing Writer, Money Morning -

Some of the best investment opportunities can happen simply by ignoring the Wall Street herd and venturing onto the road less traveled.

Take such traditional "breakfast club" commodities as sugar, cocoa, coffee and orange juice. They all enjoyed a great year, despite bearish forecasts of doom and gloom. Sugar and cocoa even traded at multi-decade highs.

Similarly, cotton got a bad rap going into 2009, though it motored into the end of the year with a tidy profit, rising on the standard laws of supply and demand.

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Asia's Economic Recovery Gathering Steam with China at the Helm

By , Managing Editor, Money Morning -

Manufacturing data today (Monday) confirmed that Asia's economic recovery is gaining strength, and China - whose economy may have expanded at a rate of 9.5% in the fourth quarter - is leading the revival.

The China Federation of Logistics and Purchasing on Sunday said the country's official purchasing managers' index (PMI) rose to 55.2 in December from 54.3 a month earlier. That's the biggest increase since April 2008, and it was aided by an increase in trade. The gauge of export orders rose to 54.5 and the reading for imports climbed to 52.8.

Similarly, the China Manufacturing PMI produced by HSBC Holdings PLC (NYSE ADR: HBC) and Markit Economics jumped from 55.7 to 56.1 last month. The index's average monthly increase in the fourth quarter was the largest on record.

Economists point to these numbers as further evidence of a robust recovery for China's economy, which grew at an 8.9% annualized pace in the third quarter.

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Investment News Briefs

By , Money Morning -

With our investment news briefs, Money Morning provides investors with a quick overview of the most important investing news stories from all around the world. IMF to Raise Global Growth Forecast; CIC Investing $1 Billion in Oaktree; Yen Highest in Eight Months; Bombardier JV Wins China Contract; World Bank President Wary of Fed's Power; Trichet: […]

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G-20 Reaches Agreement on Restructuring Economic Policy and Banking Rules

By , Contributing Writer, Money Morning -

The G-20 summit in Pittsburgh concluded Friday with agreements to restructure policies to sustain the economic recovery and to install new banking regulations to prevent a repeat of the biggest financial meltdown since the Great Depression. Also, the G-20 announced that it would become the permanent council for international economic cooperation, eclipsing the G7 and […]

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