Commodities: The Key to Predicting the Next Market Movement

Commodities and equities are very different investment vehicles.  One represents ownership in a company or business, while another represents ownership in one of the most basic units of production.  While they aren’t interchangeable, commodities typically lead any stock market rebound. The Basis for Correcting Recessions The Federal Reserve and Congress both spend significant amounts of … Read moreCommodities: The Key to Predicting the Next Market Movement

How Golden is Your Retirement Plan?

As gold reaches $1000 per ounce and silver pushes its pre-bubble highs, investors have an increasingly vested interest in precious metals.  Once ignored for their below-average returns, metals and retirement portfolios are becoming a tried-and-true mix. Why Buy Metals? Of all the “speculative” investments, gold and silver are some of the least volatile.  The term … Read moreHow Golden is Your Retirement Plan?

China Starts Bottom Picking — Should You?

In order to secure its standing in the commodities market when the economy does eventually recover, the Chinese sovereign wealth fund will be deploying up to $200 billion in new purchases. A Great Move China isn’t buying the minerals or commodities themselves, but instead companies that help find or refine the minerals for use. Remembering … Read moreChina Starts Bottom Picking — Should You?

The Dow To Gold Ratio and Stock Picking

The Dow to gold ratio has been favored by traders as an excellent way to find overbought and oversold levels on the United States’ most popular index. Using the Dow to Gold ratio provides traders with insight into finding the best times to buy and sell both gold and stocks in a rapidly changing economy. … Read moreThe Dow To Gold Ratio and Stock Picking

Aluminum Corporation of China Eyes Rio Tinto

The biggest aluminum producer in China is looking to purchase as much as $20 billion worth of convertible bonds, stock and shares of aluminum mines from Rio Tinto Group. This will be one of many mergers over the past year in which China has bought access to vital commodities in foreign countries. Rio Tinto is … Read moreAluminum Corporation of China Eyes Rio Tinto

Investing in the Chinese Stimulus

The Chinese government has enacted a tremendous spending program to keep the economy moving. China is investing billions to improve infrastructure and boost its economy, which has been dependent on exports to keep growing. However, as developed nations have slowed into recessions, the Chinese government had to take action to keep employment figures healthy. Why … Read moreInvesting in the Chinese Stimulus

Jim Rogers predicts a 20 year boom in commodities

Photo Credit: China Post When Jim Rogers speaks, the market listens.  Recently, he made very interesting comments surrounding the fundamentals of commodities. Even as the price for commodities such as oil, gold and silver have fallen steadily off their highs, he’s still bullish on the trend, even going as far to say the current bull … Read moreJim Rogers predicts a 20 year boom in commodities

Falling commodity prices will likely slow interest rate hikes

Photo Credit: Bloomberg In the last month, Ben Bernanke must have undergone significant stress regarding the decision for interest rate policy. Since Ben Bernanke kept rates at 2%, the US markets have favored decently, while the commodities markets have dropped considerably – which is just the kind of response the Fed board would love to … Read moreFalling commodity prices will likely slow interest rate hikes

Is the price of oil unwinding…or skyrocketing?

Photo Source: Cartoon Stock The stock market’s soap opera star this summer has certainly been crude oil.  Even the presidential candidates are making crude oil a topic for their campaign trail. Obama wants to remove oil speculators out of the market to let crude prices settle, while John McCain has countered by saying that the … Read moreIs the price of oil unwinding…or skyrocketing?