The Baltic Dry Index (BDI) is a composite of the Baltic Capesize, Panamax, Handysize and Supramax indices. It provides a useful snapshot of current pricing for water transportation. Recently, this index has just bounced off a five-year low. These prices are unsustainable as they will eventually bankrupt a significant amount of shippers who are unable to profit at these levels. But this could be a necessary condition for recovery in more »
On March 7 this year, I penned an article entitled "How Currency Exchange Rates Will Impact These Stocks." This outlined how currency exchange fluctuations impact economies, the new Japanese monetary policy, and the highly predictable results. For beginners, I highly encourage you to review that article. I advised readers to purchase major Japanese exporters based on my thesis.
That theses was and remains: Deliberate inflation policy (now at 2% annually more »
What happens when everyone seeks safety?
We know the story: Fed intervention has spurned interest in low paying bonds, especially with the specter of inflation around the corner. Both savers and bond investors are being forced into an equity market in which they normally would not participate. Recently, CNBC reported that 25% of Central Banks will have committed or have plans to commit capital to the equity market.
However, these more »
Recently the coal market has operated under increasing pressure as natural gas usurps coal as the fuel of choice for energy production. The coal ETF Market Vectors Coal (NYSEMKT: KOL), which tracks miners, is down 32% in the last year alone and almost 60% over the last two years. Some 42.7% of this ETF is composed of US-based companies, and a majority are pure coal plays.
But before value more »
Problems across the globe continue to mount. US hiring is weak. The prices of key commodities are falling. Cyprus. Though I could go on with the short-term bearish argument, that is not the point. This was simply a prelude to why low beta stocks with significant value will be preferable for those that choose to stay in the market. For an introduction to what beta is and why it is more »
Over the last few days, refiners have been hit hard over concerns that new pollution upgrades required by the EPA will cost hundreds of millions of dollars. Refiners have lost billions in market cap as a result. This sell-off appears overdone and could present a buying opportunity.
For the last 20 months, gasoline prices have been consolidating around the highest nominal prices in history, providing the catalyst for refiners to more »
Recently two big reports came out of the Energy Information Administration (EIA) that went largely undiscussed in the media. However, they might be worth a closer look since they confirm what many Natural Gas (NG) proponents have long expected.
After examining the reports, three stocks in three different areas will be discussed to put some profit potential behind this positive news.
Energy-related carbon dioxide emissions in 2012 were more »
Over the last few days refiners have been hit hard over concerns that new pollution upgrades required by the EPA will cost hundreds of millions of dollars. Refiners have lost billions in market cap as a result. This move to the downside appears overdone and could present a buying opportunity.
For the last 20 months gasoline prices have been consolidating around the highest nominal prices in history providing more »
Problems across the globe continue to mount and with that comes an increasingly uncertain future.
Rising political tensions in North Korea and weak US hiring were the latest pieces of ammunition in the mounting bearish arsenal.
This follows the Cypriotic fiasco which brought Europe to a standstill as unprecedented measures eroded the security of depositors.
Prices of key commodities have been falling. Couple this with the recent bearish turn seen more »
Fearing that Cyprus was on the brink of default, a last minute plan to keep the cash-strapped nation afloat was initially cheered by investors. U.S. markets opened positive on the news Monday morning, optimistic that the Cyprus deal was an isolated incident. However, early gains in the markets were erased when the Dutch Finance Minister, Jeroen Dijsselbloem, indicated that this plan could be a template for future situations.
This more »
The United States has recently grasped that it sits atop some of the largest natural gas deposits in the world. These largely untapped resources have the potential to alter the energy landscape domestically and abroad.
Demand for this commodity has increased substantially over the years.
Some major developments have recently been taking place in two very important end use points for natural gas. In 2007 the total consumed for transportation more »
Every now and then, seemingly unjustified pullbacks can gift bold investors with significant price reductions, increased yields, and more favorable long term returns. Recently, European oil stocks have suffered amid renewed fears that austerity's harsh economic effects will linger. But when quality companies with inelastic products and global demand suffer major declines, they can often offer long-term value investors an ideal entry point.
Over the last 45 more »
Euphoria is always strongest just before the correction - and this latest four-month rally has proven surprisingly resilient. Because of this resilience, it would be unwise to exit the market altogether, since you might miss out on gains. That's often just as painful as a loss. So how can you safely participate? Start by taking a closer look at your portfolio's beta.
You beta believe it
Spring is a popular time for agriculture. Farmers buy equipment, plant seeds, and apply fertilizer in hopes of producing a bumper crop. Quite a few companies stand to benefit during this time of year -- but who exactly is the best of breed? Let's examine three farming-focused stocks that could start blooming in the months ahead.
The Color of Money
It's no surprise to many long-term investors that Deere more »
Currency exchange rates play an important role in the success or failure of businesses that conduct major operations in foreign markets. Having a basic understanding of a few key principles can give investors a significant advantage in the market. Given highly predictable inflationary conditions, let's discuss how you can make money by investing in individual exporters.
Dollars & Sense
Recently, the world has been focused on the Euro vs. the more »
With the Dow Jones approaching all-time highs, it is becoming increasing difficult to find good value investments. Thus, it might be a good idea to step back and take a look at some premium selling opportunities. But don't despair, because I also have one solid stock that can keep your money safe, yet still earn returns in the long run for those with itchy trigger fingers.
What's weighing more »
Recently the Dow Jones has been flirting with 5 year highs. While the run has been great it has left some of my favorite companies looking a bit expensive. It has also made it far more difficult to find buying opportunities. Here I will examine two companies that I believe are in danger of becoming too expensive and one buying opportunity that I believe represents great value.
It's more »
Warren Buffett has given numerous reasons over the years as to why insurance is one of his favorite industries. Stability, predictability, continuous cash flow, and large cash reserves are just a few. In the past this seemingly boring sector has produced some very exciting returns. With balance sheets looking solid, this group could be poised to do very well in 2013. But let's get specific and take more »
Exchange Traded Funds (ETF's) are an investment tool often used to play broader macro economic trends. For those new to the concept, allow me to explain. ETF's are a basket of stocks with a specific investing goal that trade like a single stock. Some focus on industries like technology or health care. Others may focus on entire countries like Germany, South Africa, and Brazil. Because they are traded more »
With the Dow recently hitting five-year highs it is getting harder to find value in this market. In fact, for the first time in over a year, I'm seeing some sell signals in favorite stocks of mine. But don't despair. While I recently added some key names to my sell list I still found some very attractive long term investments.
Part of being a successful investor is not more »
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