finance

Is Now the Time to Get Back Into Copper?

I have been following Freeport McMoRan (NYSE:FCX) for about 30 years now, and it has long been one of my favorite companies, as it is one of the world's purest plays on copper. I followed it during the dark days when the red metal was trading in the basement at $0.70/pound, and liked it just as much when copper hit $4.75 in 2011. Another plus is that I know the senior management are regular readers of this letter. You can't exactly read about the copper market in Maxim, GQ, or Playboy.

Lending Takes Another Teeth-Kick

The "Financial Crisis Responsibility Fee" dropped today on Capitol Hill.
The odd-sounding measure ("You've caused a financial catastrophe. That'll be $8.50 please.") is the Obama government's latest plan to recoup the cost of bailing out the financial system over the last 18 months.
The plan basically taxes large American banks. Based on how aggressive they are.

The Tepee Shaped Recovery

The shape of this economic recovery will not be in a “V”, as many pundits have promulgated, but instead may be the inversion of that letter…which will unfortunately look much more like a tepee. The upcoming downfall will surprise most investors who have been tricked into believing that a government can print and spend their way into prosperity.

Are we at the Start of Another Commodity Boom? According to Jim Rogers we are

There are very few guarantees in the world of investment, especially at a time when so many national economies are in a current state of flux and seizure, which in turn, “muddies up the water” when it comes to asserting confident prognoses regarding the foreseeable global economy in general.
However, one fairly accepted “rule of thumb” to be found in this wonderful field of global economics states clearly that: “Following every substantial financial crash, comes an equally robust and vital commodity boom!”

Get Ready, A Major Change Has Hit

Let’s talk about sentiment.
Last week was the worst market week since March 2009. Similarly, the three-day decline from Wednesday through Friday was the worst three days since March 2009. The market is now officially in the red for 2010. And the persons we’ve identified as market props (Bernanke, Geithner, etc) are now beginning to come under intense fire for their actions.

How Long Can The Gold Bull Keep On Charging?

Most financial experts going on record these days seem to agree with the assertion that, at least for now, wise investors in the winter months of 2009 and heading into the spring of 2010, won’t need to travel all the way to the narrow streets Pamplona Spain in order to participate in the most exciting bull run of the season.
No need to risk hair nor hide as these market commentators who are openly talking about the current “Gold Bull Run” seem to be in agreement that the bulls will continue to run, smiling and laughing all the way to the bank.

Interdependence, Integration and Investment:The Ineluctable Need to Find New Emerging Oil Players

In October 2009, Nobuo Tanaka, Executive Director of the International Energy Agency (IEA), who was presenting at the International Energy Week and at the Oil Congress held in Moscow, predicted a medium-term stabilization of global oil demand in 2010-11 at a 2007-08 level until 2014, whether World GDP growth is high or low. He also mentioned a very impressive and robust surge in Russia’s oil production for 2009 - from 10mb/d in January 2009 to over 10.2mb/d in September 2009 - that took all observers by surprise.