Saturday, March 19, 2011

Japan: The Good, The Bad, and The Ugly

Japan is reeling from a devastating 9.0 earthquake and an accompanying 30 foot tsunami (a Japanese term meaning harbor wave). The tsunami tossed cars and ships around like toys, flattening towns and cities in minutes. The death toll is expected to top 10,000.
And now engineers are struggling to control radiation from damaged reactors -- a slow-moving nightmare that just won't go away.
The Good
The People. The Japanese are a hardworking, extremely resilient people. No matter how much destruction, how much suffering, how many deaths, they will bounce back. Remember, this country rose from the ashes of World War II (including losing two cities to nuclear bombs) to become the second largest economy in the world (only recently has China claimed the number 2 spot).
The Corporations. Can you think of anyone who makes cars better than Toyota (TM) or Honda (HMC)? Complete article on SeekingAlpha here

5 Reserve Rich Energy Companys at Bargain Prices

Oil is near $105 a barrel. Is it too late to invest in oil companies? I certainly don't think so! Consider these 5 reserve rich small caps. Three are bargains at current oil prices. Two, if not now, will be bargains when natural gas prices rise.
One company has $100/share in reserves, yet is priced at only $20/share. Another has 2,400,000 acres (3,750 square miles) of mostly unexplored oil shale prospects. A third, now getting into oil, is loaded with natural gas reserves . . . but sells for 7% of what it did in 2008.
Best of all, none of these companies' reserves is in volatile North Africa  Complete article on SeekingAlpha here

Using ETFs to Profit From Rising Interest Rates

Inflationary alarms -- increasingly loud -- are sounding worldwide. Europe, Canada, Great Britain, emerging markets such as China, India and Brazil have, or are contemplating, raising interest rates.

My recent article on crisis investing noted 4 sectors you should be in: oil, real estate, gold, and inverse interest rate ETFs. Here we will look at the fourth -- and most speculative -- sector: interest rate sensitive ETFs.

Walking the Edge of the Precipice

For now, the U.S. continues to pursue an easy money policy.  Read the Full Article Here