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Five Ways to Profit from the New Year Rebound in Commodity Prices
Between September 2007 and June 2008, oil prices doubled, gold rose 30% and commodities, in general, advanced by a similar percentage.
So why, six months later, when prices have fallen back below last year’s levels, does everybody think they won’t rise again? The difficulties of extraction haven’t gone away, nor have the prospects of increasing consumption in the faster-growing emerging markets such as China. Yes, the prices of commodities are severely affected by marginal moves in supply and demand, but this is ridiculous!
Rest assured, commodities prices will rebound in the New Year. The reasons will soon become quite clear.
Story continues…
16Dec2008 | Money Morning | 0 comments | ContinuedHot Stocks: Despite Lowered Target, Vale Still Poses Potential 59% Gain, Analyst Says
Riddle me this: When is it good news when an analyst slashes his price target for a stock by 55%?
Answer: When that “reduced” target price still represents a 59% gain.
That’s precisely the scenario facing Companhia Vale do Rio Doce (ADR: RIO), the world’s biggest iron-ore producer. Felipe Reis, an analyst for Banco Santander SA (ADR: STD), yesterday (Monday) slashed his target price for the U.S.-listed shares by more than half, stating that the worldwide outlook has become “more challenging.”
Reis, who previously had placed a year-end 2009 price target of $40 a share Vale’s U.S.-listed American Depository Receipts (ADRs), now says…
19Nov2008 | Money Morning | Comments Off | ContinuedIs Brazil “Investment Grade” for Investor’s Money, Too?
Brazil is a lot like a person who gets a new job, pays off some of his debts, and has his credit score upgraded.
In pretty short order, all the charge-card companies boost his credit limits, cut the interest rates he’s paying on his outstanding balances, offer him new credit lines – and even make him eligible for various “rewards” programs that give him all sorts of freebies for spending money.
Brazil finds itself in that situation because uber-debt-rater Standard & Poor’s just boosted the country’s credit rating to “investment grade” in recent weeks, moving its rating from BB+ to BBB-. Why…
15May2008 | Money Morning | Comments Off | Continued
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