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.
Teck Resources
Article Index
The Winners and Losers in the 'Commodities New World Order'
To discover the identities of the new-world-order winners – and losers – please read on...
With this Bear-Market Insurance, You Can Keep Riding the Bull
During the last few weeks, the U.S. stock market has recovered from its mid-February swoon and clawed its way to a new high for the year - returning share prices to levels not seen since late 2008.
At this point, based on consideration of its change in value since the money supply inflation began in early 1995, stocks appear to be substantially overvalued, perhaps by as much as 40% to 50%.
However, if our experiences of the late 1990s taught us anything, it's that the stock market can remain overvalued for years - meaning investors who opt out of the market completely risk getting left behind.
Still, given the soaring run-up we've seen since the stock market's March 9, 2009 nadir, I thought this would be an excellent time to review the ways nervous investors can protect themselves - even as they remain invested. That's just good, sound risk management.
And there is a way to achieve both goals - with a type of bear-market "insurance' that's fairly easy to use.
To find out about “bear-market insurance,” please read on…
At this point, based on consideration of its change in value since the money supply inflation began in early 1995, stocks appear to be substantially overvalued, perhaps by as much as 40% to 50%.
However, if our experiences of the late 1990s taught us anything, it's that the stock market can remain overvalued for years - meaning investors who opt out of the market completely risk getting left behind.
Still, given the soaring run-up we've seen since the stock market's March 9, 2009 nadir, I thought this would be an excellent time to review the ways nervous investors can protect themselves - even as they remain invested. That's just good, sound risk management.
And there is a way to achieve both goals - with a type of bear-market "insurance' that's fairly easy to use.
To find out about “bear-market insurance,” please read on…
How to Profit From China's Next Move
For many investors who don't have the benefit of 20 years of experience in Asia like I do, figuring out what Beijing is up to is both puzzling and difficult.
But a handy little tool called a "Form 13F" can help.
In case you're not familiar with it, the 13F is a disclosure document that the U.S. Securities and Exchange Commission (SEC) requires institutional-investment managers to file when they hold $100 million or more of certain U.S.-listed stocks.
China's $300 billion sovereign wealth fund (SWF) - the China Investment Corp. (CIC) - just filed its first-ever 13F with the SEC, revealing that it purchased about $9.6 billion worth of U.S. stocks last year.
And it confirms much of what we've been telling you since the global financial crisis began - namely that China would take advantage of the crisis by purchasing beaten-down stocks, resources, and hard assets ... and in a big way.
Even more important, this filing hints at what China is likely to do next - an insight that will help investors figure out where to put their money in order to maximize their personal profits.
But a handy little tool called a "Form 13F" can help.
In case you're not familiar with it, the 13F is a disclosure document that the U.S. Securities and Exchange Commission (SEC) requires institutional-investment managers to file when they hold $100 million or more of certain U.S.-listed stocks.
China's $300 billion sovereign wealth fund (SWF) - the China Investment Corp. (CIC) - just filed its first-ever 13F with the SEC, revealing that it purchased about $9.6 billion worth of U.S. stocks last year.
And it confirms much of what we've been telling you since the global financial crisis began - namely that China would take advantage of the crisis by purchasing beaten-down stocks, resources, and hard assets ... and in a big way.
Even more important, this filing hints at what China is likely to do next - an insight that will help investors figure out where to put their money in order to maximize their personal profits.
To discover how to profit from China's next move, read on...
What China's Investment Trends Are Telling Us Now
Many investors have reaped their biggest gains by playing the stock-market equivalent of "follow the leader." In the past, investors pursuing this strategy have followed the moves of such luminaries as Warren Buffett, Jim Rogers, Bill Gross, and even the late Sir John Templeton.
But there's now a potential new "leader of the pack" whose moves investors need to watch and even emulate.
We're talking about China.
But there's now a potential new "leader of the pack" whose moves investors need to watch and even emulate.
We're talking about China.
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