August 31, 2010 – The Coming Takeover Wars

Featured Trades: (TAKEOVER WARS), (BHP), (POT), (SNY), (GENZ), (IFX), (HPQ), (DELL), (BP), (INTC)   1) The Coming Takeover Wars. The spate of takeover bids we have witnessed in recent weeks, the BHP Billiton (BHP)-Potash (POT) deal, the Sanofi Aventis (SNY)-Genzyme (GENZ) deal, Intel's (INTC) acquisition of Infineon Technologies (IFX), and the ongoing bidding … [Read more...]

August 31, 2010 – On Safari for Trades in South Africa

Featured Trades: (SOUTH AFRICA), (EZA) South Africa iShares ETF 2) On Safari in South Africa. When I first visited South Africa (EZA) as a journalist in 1979, I was stuffed into the trunk of a car and smuggled into Soweto, a fenced off  'township' , so I could write about the appalling living conditions there. Six ANC bodyguards accompanied my every move, as to … [Read more...]

August 31, 2010 – Lunch With Bill Clinton

Featured Trades: (BILL CLINTON) 3) Lunch With Bill Clinton. I opened the e-mail at my usual wake up time of 4:00 am. President Bill Clinton was playing at the Presidents' Cup PGA tournament at the Harding Park Golf Course in San Francisco today. Would I have time for a chat about US economic policy afterwards? That afternoon, in walked Slick Willy, sunburned from … [Read more...]

August 30, 2010 – Silver is Hot, Hot, Hot

Featured Trades: (SILVER), (SLV) iShares Silver Trust ETF   2) Silver is Hot, Hot, Hot. Those who followed my advice to watch silver should by now have the precious coins raining down upon them (click here for 'Why the Really Big Play is in Silver' ). Since then, the precious white metal has jumped 8% to $19.30, just pennies short of a multiyear high, … [Read more...]

August 30, 2010 – China’s Insatiable Appetite for Gold

Featured Trades: (GOLD), (GLD), (GDX) SPDR Gold Shares Trust ETF Market Vectors Gold Miners ETF 3) China's Insatiable Appetite for Gold. Gold bugs and naysayers alike take note. When the world's second largest and fastest growing economy liberalizes gold ownership by individuals, who happened to be the planet's most fastidious savers at a 17% rate, you better pay … [Read more...]

August 27, 2010 – The San Francisco Money Show

Featured Trades: (GOLD), (GLD), (GDX) SPDR Gold Shares ETF Market Vectors Gold Miners ETF 1) The San Francisco Money Show. I attended the Woodstock of investment conferences last week, the San Francisco Money Show, which offered an entertaining three ring circus of traders, foreign exchange models, options platforms, newsletters, cruises, video broadcasts, and … [Read more...]

August 27, 2010 – A Chat With Steve Forbes

Featured Trades: (STEVE FORBES) 2) A Chat With Steve Forbes. I sat down with Forbes magazine publisher and perennial Republican presidential candidate, Steve Forbes, whose father, Malcolm, I knew from my journalism days in the seventies. He was there formally to promote his new book, Power Ambition Glory, but I couldn't help but sense his loftier goals. He says … [Read more...]

August 27, 2010 – Be Careful Who You Snitch On

Featured Trades: (WHISTLEBLOWERS) 3) Be Careful Who You Snitch On. Buried in the recently passed Dodd-Frank financial reform bill are massive financial rewards for turning in your boss. The SEC is hoping that multimillion dollar rewards amounting to 10%-30% of sanction amounts will drive a stampede of whistleblowers to their doors with evidence of malfeasance and fraud … [Read more...]

August 27, 2010 – Peter F. Drucker on Management

Featured Trades: (PETER F. DRUCKER ON MANAGEMENT) 4) Peter F. Drucker on Management. If you have been living in a cave for the last 71 years and missed the work of management guru, Peter F. Drucker, here is your chance to catch up. I just finished reading The Essential Drucker, a weighty tome of 368 pages which summarized the high points and pearls of wisdom of the … [Read more...]

August 26, 2010 – Don’t Buy That Treasury Bond

SPECIAL BOND BUBBLE ISSUE   Featured Trades: (TREASURY BONDS), (TIPS), (TBT) ProShares Ultra Short 20 year +Treasury ETF 1) Don't Buy That Treasury Bond. Another week later, and Treasury bond prices have raced up to even dizzier heights, breaking more records for over valuation. According to the Investment Company Institute, outflows from equity mutual funds … [Read more...]

August 26, 2010 – Another Nail in the Coffin for Residential Real Estate

SPECIAL BOND BUBBLE ISSUE Featured Trades: (RESIDENTIAL REAL ESTATE), (BAC) 2) Another Nail in the Coffin for Residential Real Estate. Those few, like myself, who believe that the residential real estate market has another down leg ahead of it, got their smoking gun yesterday. July existing home sales cratered 27.2% to a seasonally adjusted rate of 3.83 million … [Read more...]

August 26, 2010 – Why Gold Seems Unbreakable

SPECIAL BOND BUBBLE ISSUE Featured Trades: (GOLD), (GLD), (GDX) SPDR Gold Shares ETF Market Vectors Gold Miners ETF 3) Why Gold Seems Unbreakable. While the rest of the world has been going to hell in a hand basket, gold (GLD), (GDX) refuses to take a serious dip, and is threatening the old $1,260 high. Today, the World Gold Council, the ultimate go-to source for … [Read more...]

August 26, 2010 – It’s Official: China is Unloading its Treasury Bonds

SPECIAL BOND BUBBLE ISSUE Featured Trades: (TREASURY BONDS) 4) Its Official: China is Unloading its Treasury Bonds. It looks like the smart money these days is found in China. While American investors have been scrambling over each other to buy more Treasury bonds at historically low yields, China has begun quietly unloading some of its own enormous holdings. In … [Read more...]

August 26, 2010 – Quote of the Day

'If you look at previous times in US history when bond yields were this low, the returns have been quite poor. Bonds now have many elements of a bubble. We're at the end of the debt super cycle. First we had a large banking crisis. The next step is a large sovereign crisis. This means that government bonds are a pretty bad bet over a five to ten year period,' … [Read more...]

August 25, 2010 – So You Think They’re Not Watching You on Your PC?

Featured Trades: (BEHAVIORAL TARGETING) 1) So You Think They're Not Watching You on Your PC? Hey! You there, staring at this monitor. This is your PC talking to you. No, not you over there standing in the background. I'm talking to the guy sitting in front of me poking at my keys. Ouch! That one hurt! So you thought no one was watching, did you? Let me … [Read more...]

August 25, 2010 – It’s Off to the Races at Molycorp

Featured Trades: (RARE EARTHS), (MCB), (LYSCF) 2) It's Off to the Races at Molycorp. I just wanted to follow up on the rare earths piece which I recently published (click here for "Rare Earths Are Becoming A Lot More Rare"). Despite lackluster market conditions at best, Molycorp (MCP) managed to raise $394 million through its July IPO at $14/share. The company will use … [Read more...]

August 25, 2010 – Thailand Punches Through to New Highs

Featured Trades: (THD), (TF), (F), (NSANY), (TM) iShares MSCI Thailand Investable Market Index ETF Thai Capital Fund 3) Thailand Punches Through to New Highs. With hotel occupancy in the dumps at 20%-30%, and parts of downtown Bangkok still in ruins from the May riots, you would think the call to buy Thailand (THD), (TF) two months ago was a complete bust (click here … [Read more...]

August 25, 2010 – Make Another Visit to the Trough for Baidu

Featured Trades: (BAIDU), (GOOG) 4) Make Another Visit to the Trough for Baidu. Just like buying a drink for an old flame when passing through town, there is no better feeling than revisiting winning trades. I first recommended Baidu (BIDU) at split adjusted $12.5 in December, 2008 (click here for the call). It hit $88 earlier this month, a 700% gain. The current bout … [Read more...]

August 25, 2010 – Quote of the Day

'When I look at the Treasury market, I get a really 1998 sort of dotcom feeling. You knew they were going higher, you knew that it would end badly; you just didn't know the timing. At a certain point this becomes a disaster,' said Barry Ritholtz, CEO of hedge fund Fusion IQ. … [Read more...]

August 24, 2010 – Why We’re on the Slow Boat to Nowhere

Featured Trades: (THE RANGEBOUND MARKET), (SPX), (FCX), (VIX), (USO), (GLD) 1) Why We're on the Slow Boat to Nowhere. After speaking to a gaggle of economists, portfolio managers, and traders the last few days, I've had one of those 'Eureka' moments, as the markets have shown their hands. Those that delivered the dramatic, heart stopping moves … [Read more...]

August 24, 2010 – Peabody Energy (BTU), Takes a Hatchet to the Natural Gas Industry

Featured Trades: (COAL VS. NATURAL GAS), (BTU), (RTP), (ACI), (CHK), (BNR) 2) Peabody Energy (BTU) Takes a Hatchet to the Natural Gas Industry. After my year in the White House Press Corps, I vowed never to return, and took a really long shower, hoping to scrub every last spec of prejudice, self interest, and institutionalized corruption off of my battered carcass. … [Read more...]

August 23, 2010 – Why Your Next Car May be a Hyundai

Featured Trades: (SOUTH KOREA), (EWY) (FXI) South Korea iShares ETF iShares FTSE Xinhua China 25 1) Why Your Next Car May be a Hyundai. I have been banging on about South Korea (EWY) for some time now as the 'K' that should be in the acronym 'BRICK', the country that has successfully carved out a niche between the rock and the hard place, China and Japan. So when the … [Read more...]

August 23, 2010 – Is Palladium the New Gold?

Featured Trades: (PALLADIUM), (PALL) ETFS Physical Palladium Shares ETF 2) Is Palladium the New Gold? When the current outbreak of angst biting at the heels of the markets runs its course, and traders morph back into risk accumulation mode, you can count on palladium outperforming the other precious metals. During 2009, gold rose 27%, silver 49%, platinum 56%, and … [Read more...]

August 20, 2010 – Don’t Buy Anything That Can Be Created With a Printing Press

Featured Trades: (COMMODITY OVERVIEW), (FCX), (VALE), (RIG), (JOY), (CCJ), (FSLR), (UNG), (USO), (MOO), (DBA), (MOS), (MON), (AGU), (POT), (PHO), (FIW) 2) Don't Buy Anything That Can Be Created With a Printing Press. I just want to take a moment to provide the long term view of commodities. This is my favorite asset class for the next decade, as investors … [Read more...]

August 19, 2010 – BHP Billiton Develops an Appetite for Potash

Featured Trades: (POT), (BHP), (VALE), (MOS), (AGU)   1) BHP Billiton Develops an Appetite for Potash. BHP Billiton's (BHP) low key, South African CEO, Marius Kloppers, has announced that he is making a hostile takeover bid for Potash (POT) for $39 billion, or $130 a share, a multiple of a mere 13 times earnings. POT immediately shot up to $147, a 32% premium … [Read more...]

August 19, 2010 – Hedge Fund Managers Head for the Frontier

Featured Trades: (FRONTIER MARKETS), (GXG), (FRN), (FFD), (TFMAX) Claymore/BNI Mellon Frontier Markets ETF Global X Interbolsa FTSE Columbia ETF 2) Hedge Fund Managers Head For the Frontier. No, they are not donning a Stetson, cowboy boots, and a six gun to fight Indians in the Wild West, where I live. Their never ending reach for yield is taking them beyond junk … [Read more...]

August 19, 2010 – My Run in With the Law

Featured Trades: (THE LAW) 4) My Run in With the Law. I'm sorry I'm late getting my letter out today. I was racing home from San Francisco on Highway 24 when the California Highway Patrol pulled me over for doing 80 mph in a 65 mph zone. The officer asked me where the fire was, and I told him I was rushing back to my office to get my investment … [Read more...]

August 19, 2010 – Quote of the Day

'Bull markets are born on pessimism, grow on skepticism, mature on optimism, and they die on euphoria,' said my late friend, Sir John Templeton, over lunch at his home at Lyford Cay in the Bahamas. … [Read more...]

August 18, 2010 – For Profit Education Jumps From the Frying Pan to the Fire

Featured Trades: (FOR PROFIT EDUCATION), (APOL), (DV), (CPLA), (COCO), (STRA), 1) For Profit Education Jumps From the Frying Pan to the Fire. On Friday, the Department of Education released data showing that the student loan repayment rate at some schools was as low as 25%, and that it would take action to disqualify these schools for future student loans. That amounts … [Read more...]

August 18, 2010 – Why Can’t We Be More Like Chile?

Featured Trades: (CHILE), (ECH), (CU) iShares MSCI Chile Index Fund ETF First Trust ISE Global Copper ETF   2) Why Can't We Be More Like Chile? I just want to pass on some data forwarded to me from my extensive band of Chilean readers in response to my recent piece, 'Chile is Looking Hot' (click here for the piece). In 2007, the government dissolved the old … [Read more...]

August 18, 2010 – It’s Official: China is Number Two

Featured Trades: (CHINA), (TAIWAN), (JAPAN), (FXI), (EWJ), (EWT) iShares FTSE/Xinhua China 25 Japan iShares ETF Taiwan iShares ETF 3) It's Official: China is Number Two. With China's (FXI) economy rocketing at 8%-13% quarterly growth rates, and Japan (EWJ) plodding away with meager 1%-2% rates, it was only a matter of time before the Middle Kingdom bumped … [Read more...]

August 18, 2010 – Trashing CNBC on a Slow Day

Featured Trades: (CNBC SPOOF) 4) Trashing CNBC on a Slow Day. With trading volume dropping through the floor the market has gotten so boring that I have run out of things to write about. So I can either pump out a mediocre piece of crap that you will probably lose money on, like the other newsletters do, or I can give you something frivolous and useless, but … [Read more...]

August 17, 2010 – The Fed Makes Its Move

Featured Trades: (QUANTITATIVE EASING) 1) The Fed Makes Its Move. Man, I go on vacation of a couple of days and the world turns upside down. I'm talking about the arrival of the QE II. No, I'm not talking about the docking of a new cruise ship, or even the ruling member of the House of Windsor. It's round two of quantitative easing I'm referring to, the Federal Reserve's … [Read more...]

August 17, 2010 – ConocoPhillips Looks Like a Steal

Featured Trades: (COP), (BP), (OIL) 2) ConocoPhillips Looks Like a Steal. Since I am a permabull on energy of all types, I am constantly trolling the markets for cheap energy plays, and ConocoPhillips (COP) popped up on my radar. The large cap integrated oil major has announced a $20 billion restructuring that has whetted my appetite. Specifically, they are allocating … [Read more...]

August 17, 2010 – Pick Up Shipping Stocks for the Dividend

Featured Trades: (SHIPPING), (TK), (NAT), (OSG), (FRO) 3) Pick Up Shipping Stocks for the Dividend. The markets are currently stampeding for yield of any description, damn the risk. That's why shipping stocks have suddenly come into focus, which offer some of the highest dividend yields on the board. Nordic American Tanker (NAT) has a bounteous 8.30% dividend, while … [Read more...]

August 16, 2010 – Enjoy the Dollar Rally While it Lasts

Featured Trades: (US DOLLAR)   1) Enjoy the Dollar Rally While it Lasts. Any trader will tell you the trend is your friend, and the overwhelming direction for the US dollar for the last 220 years has been down. Our first Treasury Secretary, Alexander Hamilton, found himself constantly embroiled in sex scandals. Take a ten dollar bill out of your wallet and … [Read more...]

August 16, 2010 – Keep Indonesia on your Radar

Featured Trades: (INDONESIA), (IDX) Market Vectors Indonesia Index ETF 3) Keep Indonesia on your Radar. If you are looking for another emerging market to add to your list of things to buy on dips, then take a look at Indonesia (IDX). The world's largest Muslim country offers a combination that I love, a population with great demographics that is also a major energy … [Read more...]

August 13, 2010 – Rare Earths Are Becoming a Lot More Rare

Featured Trades: (RARE EARTHS), (AVL.TO), (GWMGF.PK), (RAREF.PK), (LYSCF)   1) Rare Earths Are Becoming a Lot More Rare. Interest in Rare Earths is starting to heat up in a dramatic fashion and it is something you should keep on your radar. So named because they were hard to get in the 18th and 19th century, these once obscure elements have suddenly become the … [Read more...]

August 13, 2010 – Why the Really Big Play is in Silver

Featured Trades: (SILVER), (SLV) 2) Why the Really Big Play is in Silver. Those transfixed by gold topping the $1,200 level again have been missing the real action in silver. The white metal has soared 24% to $18.46 since the February low, compared to a more modest 15% move for the barbaric relic, an outperformance of 1.6 to one. I have been a raging bull on … [Read more...]

August 13, 2010 – Why We Need Six New Saudi Arabias

Featured Trades: (OIL), (USO), (XOM), (OXY), (NATURAL GAS), (UNG) United States Oil Fund ETF United States Natural Gas Fund ETF 3) Why We Need Six New Saudi Arabias. I recently spent an evening with Ambassador Richard Jones, the Deputy Executive Director of the International Energy Agency in Paris, who had some eye opening things to say about the energy space. The … [Read more...]

August 13, 2010 – Scam of the Week

Featured Trades: (SCAM OF THE WEEK) 4) Scam of the Week. Having trouble raising capital for your new hedge fund? Just list Warren Buffet as your 'Honorary Chairman.' That's what California prison guard Ottoniel Medrano did. To help his marketing efforts, he also claimed that he had $4.8 billion in assets under management as well as massive real … [Read more...]

August 12, 2010 – Lunch With the CIA

Featured Trades: (LUNCH WITH THE CIA) 1) Lunch With the CIA. Lunch with the Central Intelligence Agency is always interesting, although five gorillas built like brick shithouses with wires sprouting out of their ears, staring at me intently, didn't help my digestion. Obama's pick of Leon Panetta as the agency's new director was controversial because he … [Read more...]

August 12, 2010 – Time for Platinum to Play Catch Up

Featured Trades: (PLATINUM), (PPLT) ETFS Physical Platinum ETF 2) Time for Platinum to Play Catch Up. Since you've recently been romancing gold, you should check out platinum, her younger, racier, and better looking sister, who wears the low riders. The white metal historically has more volatility than gold, but this year has risen by only 6.2%, compared to a 9.5% … [Read more...]

August 12, 2010 – This is Not Your Father’s Nuclear Power Plant

Featured Trades: (NEW NUCLEAR), (NUSCALE POWER) 3) This is Not Your Father's Nuclear Power Plant. On my recent trip to Oregon, I met with venture capital investors in NuScale Power, which is trailblazing the brave new world of 'new' nuclear. Their technology has been pioneered by Dr. Jose Reyes, dean of the School of Engineering at Oregon State … [Read more...]

August 12, 2010 – Watch Out for the Chihuahua Glut

Featured Trades: (THE CHIHUAHUA GLUT) 4) Watch Out for the Chihuahua Glut. Yesterday, I wrote about the Nevadan wrinkle in the housing crisis where distressed homeowners are letting their horses go wild to make their mortgage payment. Now, neighboring California is facing a Chihuahua glut, where evicted homeowners are handing over their pets to animal shelters. The … [Read more...]

August 12, 2010 – Quote of the Day

'There are people who can't get used to the idea that the country is being run by a black guy living in public housing. Obama is only half black, so I guess that makes him our 'starter Negro,' said political commentator Will Durst. … [Read more...]

August 11, 2010 – Kiss That Union Job Goodbye

Featured Trades: (WHERE HAVE ALL THE JOBS GONE?), 1) Kiss That Union Job Goodbye. Those of you counting on getting your old union assembly line job back in Detroit can forget it. The recent eight year forecast published by the Bureau of Labor Statistics shows that 4.19 million jobs will be gained in the US in professional and business services, followed by 4 million … [Read more...]

August 11, 2010 – China Steps Up Its Nuclear Program

Featured Trades: (CHINESE NUCLEAR PROGRAM) 2) China Steps Up Its Nuclear Program. The Middle Kingdom currently has 12 operational plants generating 12 gigawatts accounting for 2.3% of the country's power. Another 23 are currently under construction. It plans to add ten a year for the next decade, taking them up to 70 Gigawatts by 2020, and a staggering 400 … [Read more...]

August 11, 2010 – Why Don’t We Try Chinese Style Securities Regulation?

Featured Trades: (INCARCERATION RATES) 3) Why Don't We Try Chinese Style Securities Regulation? Former stock trader, Yang Yanming, was recently executed by lethal injection for embezzling $9.52 million from Galaxy Securities during 1997 to 2003. The move was part of a broader effort by the Mandarins in Beijing to crack down on rampant corruption in the … [Read more...]

August 11, 2010 – The Bull Market in Mustangs

Featured Trades: (MUSTANGS) 4) The Bull Market in Mustangs. The Western US has found a new wrinkle in the housing collapse, where homeowners are desperately struggling to cut living costs to meet the next doubling of their adjustable rate mortgage payments on their underwater houses. Raising horses can cost more than children, so Nevadans are turning them loose … [Read more...]

August 11, 2010 – Quote of the Day

'It amazes me how quickly amnesia sets in,' said Stephen Crawford, former co-president of Morgan Stanley, about the willingness of hedge funds to re-leverage positions in these conditions. … [Read more...]

August 10, 2010 – The Best Trade of the Year

(SPECIAL FOOD ISSUE) Featured Trades: (CORN), (WHEAT), (SOYBEANS), (POT), (MOS), (AGU) Teucrium Agricultural Trust Corn Fund PowerShares DB Multisector Commodity Trust Agriculture ETF 1) My Best Trade of the Year. I was having a good 2010 until the grain trade came along. Now I'm have a fabulous year. Since my initial call to buy on June 24 (click here for the … [Read more...]

August 10, 2010 – The Bull Market in Food Is Only Just Starting

(SPECIAL FOOD ISSUE) Featured Trades: (POT), (MOS), (AGU), (DBA) 2) The Bull Market in Food Is Only Just Starting. I believe that the surge in the price of food we have seen in recent weeks is the beginning of a major, secular, long term trend. During the sixties, new dwarf varieties, irrigation, fertilizer, and heavy duty pesticides tripled crop yields, … [Read more...]

August 9, 2010 – Job Creation is Still on Vacation

Featured Trades: (JULY NONFARM PAYROLL)   1) Job Creation is Still on Vacation. If I have learned one thing from 40 years in the financial markets, it's that traders demand instant gratification. So when the July nonfarm payroll showed a loss of 131,000 jobs, an unchanged unemployment rate at 9.5%, and total unemployment of 14.6 million, you can count on them … [Read more...]

August 9, 2010 – The Cooling Market for Hedge Fund Traders

Featured Trades: (HEDGE FUND HIRING) 2) The Cooling Market for Hedge Fund Traders. The tide is suddenly heading out to sea for aspiring hedge fund traders. Ilana Weinstein of the IDW Group, which specializes in hedge fund recruitment, says that the new financial regulation bill has fundamentally changed the supply and demand balance for hedge fund … [Read more...]

August 9, 2010 – I’ll Take Two Lumps, Please

Featured Trades: (SUGAR), (SGG), (CZZ), iPath Dow Jones-UBS Sugar Subindex Total Return ETN 3) I'll Take Two Lumps, Please. It's just a matter of time before global buying of the grains spills over into the sugar market. A combination of torrential rains in Brazil, the source of 54% of the world supply, and draughts in India, sent prices to a 35 year high … [Read more...]

August 9, 2010 – A Hiroshima Memorial

Featured Trades: (HIROSHIMA ANNIVERSARY) 4) A Hiroshima Memorial. Friday was the 65th anniversary of the Hiroshima atomic bomb, an event that that has touched me in many ways. I never had any doubt for the need to use the bomb in 1945. My father had orders to join his third marine division in Okinawa for the invasion of Japan when it was dropped. If the plan had … [Read more...]

August 6, 2010 – Get Ready for the Sack of Rome

Featured Trades: (THE SACK OF ROME), (TBT), (TMV) ProShares Ultra Short Lehman 20+ Year Treasury ETF Direxion Daily 30 Year Treasury Bear 3X Shares ETF 1) Get Ready for the Sack of Rome. I traded the great Japanese bull market during the eighties at Morgan Stanley, from the very bottom all the way up to the peak. The firm's fundamental analysts railed against the … [Read more...]

August 6, 2010 – Emerging Markets Are on a Tear

Featured Trades: (EMERGING MARKETS ARE HOT), (EPOL), (IDX), (ECH), (EWS) iShares MSCI Poland Investable Market ETF Market Vectors Indonesia ETF Singapore iShares ETF iShares MSCI Chile Fund Index ETF 2) Emerging Markets Are on a Tear. Regular readers of this letter know that I have been going on about emerging markets like a broken record (as my kids ask 'What's … [Read more...]

August 6, 2010 – What’s Behind the Yen Strength

Featured Trades: (YEN), (FXY), (YCS) Currency Shares Japanese Yen Trust ProShares UltraShort Yen ETF 3) What's Behind the Yen Strength. My old friend Peter Tasker (we both wrote for the late Far Eastern Economic Review in the seventies), ran an interesting editorial in the Financial Times today (click here for the piece). He examines the only two assets that have … [Read more...]

August 6, 2010 – The Skinny on Lithium

Featured Trades: (SQM), (HEV), (ENS), (XIDE), (CHP), (ZBB), (EV) 4) The Skinny on Lithium. Long time readers of this letter know that I have been a huge bull on lithium plays, my pick in the sector, Chile's Sociedad Quimica Y Minera (SQM), bringing in a handy 250% pop off the lows in 2009. You couldn't lose, because if the car battery boom faded, they … [Read more...]

August 6, 2010 – Quote of the Day

'People are finally starting to realize that 'extended period' means 'extended period,' said former University of Chicago professor and former Fed governor Randall Kroszner, about future interest rate expectations. … [Read more...]

August 5, 2010 – The Price of Oil is Going Up

Featured Trades: (OIL), (NATURAL GAS), (BP), (XOM), (OXY),   1) The Price of Oil is Going Up. I received another scratchy, crackling cell phone call from my drilling buddy in the Texas natural gas fields today. You could almost choke from the dust on the line. He told me that the BP Gulf disaster was turning the fundamental assumptions of the oil industry … [Read more...]

August 5, 2010 – The Smoking Gun on For-Profit Education

Featured Trades: (FOR PROFIT EDUCATION), (APOL), (COCO), (ESI) 2) The Smoking Gun on For-Profit Education. When I recommended the for-profit education sector as a potential short (click here for 'Hedge Funds Are Targeting for Profit Education'), I didn't know that the General Accounting Office was conducting an undercover investigation of several schools. Since then … [Read more...]

August 5, 2010 – Nuclear Energy Makes a Comeback

Featured Trades: (THE NUCLEAR COMEBACK), (CCJ), (NLR)   3) Nuclear Energy Makes a Comeback. Better drag your leisure suits, bell bottoms, and Bee Gee's records out the attic. The seventies are about to enjoy a rebirth. The nuclear industry, which has been comatose since the accident at Three Mile Island in 1979, is gearing up for one of the greatest … [Read more...]

August 5, 2010 – Quote of the Day

' The oil era will end in 30 years, as it is replaced by alternatives, offshore, and tar sands,' said Ahmed Zaki Yamani, the former Saudi oil minister, who invited me on his private jet for a trip to the kingdom so I could conduct an exclusive interview during the seventies. … [Read more...]

August 4, 2010 – The Mad Hedge Fund Trader Interviews Dr. George Friedman of STRATFOR on Hedge Fund Radio

Featured Trades: (DR. GEORGE FRIEDMAN OF STRATFOR), (HEDGE FUND RADIO), (RSX), (FXI), (EPOL), (TUR) Market Vectors Russia ETF Trust iShares MSCI Turkey Investable Market ETF iShares MSCI Poland Investable Market ETF iShares FTSE Xinhua China 25 ETF 1) Dr. George Friedman of STRATFOR on Hedge Fund Radio. China is in serious trouble. That is the conclusion of Dr. … [Read more...]

August 4, 2010 – Grain Prices Are Spiking Everywhere

Featured Trades: (WHEAT), (CORN), (SOYBEANS) PowerShares DB Multi Sector Commodity Trust Teucrium Commodity Trust Corn 2) Grain Prices Are Spiking Everywhere. Now the grains are literally on fire. News reports over the weekend of wild fires triggered by historic draught conditions in Russia and the Ukraine, consuming vast swaths of wheat have sent prices flying. The … [Read more...]

August 3, 2010 – China’s PMI Sets Market a Flutter

Featured Trades: (CHINA), (FXI) 1) China's PMI Sets Market a Flutter. Several decades ago, a kid selling greeting cards door to door (yes, that's how old I am) stopped by my office. When I said no, he suddenly burst into tears and threw a handful of samples up in the air, which then wafted back down into the adjoining cubicles. That's how I felt this … [Read more...]

August 3, 2010 – Don’t Hold Your Breath for Residential Real Estate

Featured Trades: (RESIDENTIAL REAL ESTATE) 2) Don't Hold Your Breath for Residential Real Estate. Every few weeks I get a warm and fuzzy feeling when I see my old house for sale in the Wall Street Journal. I'm sure you've seen it. It's the 8,500 square foot, four bedroom, seven bathroom white elephant perched on a mountain peak, with a dramatic waterfall pouring into a … [Read more...]

August 3, 2010 – An Evening with Jack Welch

Featured Trades: (JACK WELCH), (GE)   3) An Evening with Jack Welch.  I met Jack Welch last night, the legendary retired CEO of General Electric (GE). 'Neutron' Jack gets the credit for boosting the market cap of GE from $13 billion to $400 billion in 20 years, turning it into a Wall Street darling in the process. The 'hedge fund that makes light bulbs' is … [Read more...]

August 3, 2010 – Quote of the Day

'Cleantech, greentech, and energy technology has to be the next great global industry. China gets it,' said Pulitzer Prize winner tom Freidman, author of Hot, Flat, and Crowded. … [Read more...]

August 2, 2010 – Chile is Looking Hot

Featured Trades: (CHILE), (ECH) iShares MSCI Chile Fund ETF 1) Chile is Looking Hot. Want to invest in an extremely well managed country with almost no debt, budget surpluses, an appreciating currency, and the price for its dominant export commodity going through the roof? Then, Chile is the place for you. It is an old trading adage that if you throw bad news on a … [Read more...]

August 2, 2010 – A Busy Signal at China Mobile

Featured Trades: (CHL) 2) A Busy Signal at China Mobile. People often ask why I bother to produce this newsletter. Sure, the private jets to the Kentucky Derby, the free tickets to heavyweight fights in Las Vegas, and the endless dinner invitations in every major city in the world are all nice. But for me the real incentive is the great tips I get from readers from … [Read more...]

August 2, 2010 – Pick Up Big Oil While it is Still Cheap

Featured Trades: (XOM), (USO) United States Oil Fund ETF 3) Pick Up Big Oil While it is Still Cheap. I have always been an unfashionable person. I was still wearing my bell bottoms and mutton chop sideburns well into the eighties, and even today people laugh at my yellow power ties which are 30 years old. It's all part of my living antique image. To be consistent, I … [Read more...]