10 Global Trends to Follow for the Next 18 Months
Source: Money Morning††(5/12/08)
Energy will be a recurrent theme in the months to come. Crude oil will remain in the forefront of the profit plays to come. But thatís not all: Alternative energy opportunities such as uranium and so-called "green energy" investments will benefit from soaring prices for conventional energy sources.
All you have to do is call the right plays - by picking the right trends. Here are 10 that are worth watching - and capitalizing on - as they play out in the global capital markets at different times over the next 12 months or more.
Cash in on the Cash Barons: Sovereign wealth funds from China and the Middle East are pouring billions into stocks too many investors would rather ignore.
Energize With Energy: Energy will be a recurrent theme in the months to come - and not just in terms of oil and gasoline. Crude oil will remain in the forefront of the profit plays to come. But thatís not all: Alternative energy opportunities such as uranium and so-called "green energy" investments will benefit from soaring prices for conventional energy sources. When it comes to these profit plays, it will pay to keep all your bases covered.
...Home in on Housing: Housingís down, but itíll never be out. The turnaround is still some time off, but this sector isnít going to go away. Itíll take careful and patient investing to profit here, but keep the sector on your radar screen - if for no other reason than to use it as a barometer for the rest of the currently moribund U.S. economy.
Invest in Income: Studies show time and again that income is key to any portfolioís success. And those same studies show that if you call the dividend play during a bearish market, your portfolio will easily beat "the spread" - in this case, the market averages as measured by the Standard & Poorís 500 Index and Dow Jones Industrial Average. And if you canít decide between stocks or bonds for income, donít flip - our report covers both sides of the coin.
Hit the "BRICs:" BRIC is a Goldman Sachs Group Inc. (GS) acronym for "Brazil, Russia, India and China." Three of the four - Brazil, India and China - are not to be ignored in the months to come. After the wild ride Chinese stocks have provided in recent months, too many U.S. investors are ready to give up on the Red Dragon. Donít make that mistake. Weíve seen some life in Chinaís stock market in recent days, and there will be plenty of ways to profit from that emerging economic colossus, some of which involve only moderate risk. [To find out how you can obtain a free copy of investing guru Jim Rogerís new bestseller, "A Bull in China," which details investing strategies for that burgeoning market, please click here].
Go for Gold: The yellow metal has enjoyed a record run. And itís subsequently dropped back. But donít let that disappoint you: With global demand for commodities of all kinds soaring, thereís plenty of yardage left on this play. Besides, if inflation escalates as many experts expect, gold will provide a terrific portfolio hedge.
Couple up With Commodities: The gangbusters global growth thatís causing gold and crude oil prices to "go long" is having the same effect on such commodities as wheat, corn and soybeans. Even Jim Rogers says the global demand for commodities is only going to escalate, meaning this is a play you can call now with a high degree of confidence and score again and again.
Donít Give up on the Greenback: The U.S. dollar has been sinking against virtually every other major currency, a trend that could well continue for some time to come. That doesnít mean you should ignore the greenback. Run a reverse and look for ways to profit on its pain. Not only will you score now, youíll be focused in and ready to profit when playing field changes and the U.S. greenback reverses course on its own run for the end zone...