To paraphrase the great trader Jesse Livermore, “We must be like a merchant who foresees future demand, purchases his line and patiently awaits for profit taking time.” Investors in wealth in the earth assets should listen to Livermore’s wisdom. In due time, these commodities which are low priced will come back into vogue. In order to be right in the market, the majority has to believe you are wrong. Great investors like Livermore and Baruch were able to have confidence to hold on even when the positions were not popular.Read more
China Markets Breaking Out Into New Highs May Boost Commodities
For months, we have been highlighting to our readers that China’s economy is beginning to pick up which could positively influence commodity prices. The fears of a slowdown were overblown. China's stock markets (FXI) have been rallying since early September because speculation is rising that the newly chosen Communist Party may boost the economy and is approaching a major 52 week high breakout.Read more
Will Japanese Election Spark A Rebound In Uranium?
One sector where we see a great amount of value is the uranium miners (URA) as The Chinese are going full speed ahead in building next generation nuclear reactors. The uranium spot price is just over $40, which is near the bottom of its three year range. Uranium may represent a bottoming situation. Look for a reversal in the near term and break above the recent downtrend due to the following reasons.Read more