Vital Resource Investor

Water Winners

August 21, 2008

According to the United Nations, sometime in next 15 years, some 64 percent of the Earth’s population will live in areas where water supplies are stressed. In some cases, demand will simply grow to exceed supply. In others, environmental concerns and economic growth will severely stress water quality to the breaking point and beyond.

It all adds up to a colossal opportunity to invest in water.

Gold vs. the US Dollar

August 14, 2008

Strong euro, strong gold; weak euro, weak gold: As the graph below illustrates, that’s been a very quantifiable relationship over the past several months. More important, the two markets are likely to keep trading in tandem over the next several months as well.

The Prudent Bull

August 7, 2008

Materials have outperformed every other sector on a global basis over the past five years. As a result, the brutal market selloff of late left investors asking, “Is this the end of the bull market in resources?” Coupled with the visible--albeit expected--global economic slowdown and lower oil prices, investor anxiety is rational.

The Next Leg Up

July 31, 2008

Bull markets are never uninterrupted streams of rising profits. Rather, it’s usually two steps forward, one step back. And when it comes to volatile sectors such as vital resources, the wild action is known for routinely shaking out weak hands.

The Trade, Mechel and More

July 24, 2008

It may sound cliche to say financial markets are moving faster than ever. But this fear-drenched climate has undeniably produced more than its share of big moves as investors lurch from one sector to another.

The Switch

July 17, 2008

The recent grand theory that the weak US dollar explains the strength in resources is rapidly being discredited. Resource-leveraged stocks continue to correct even while the greenback is at its weakest.