Last week I mentioned a commodity far more precious than Oil – Water. I know of at least one reader that decided to take the plunge and purchase PHO (water resources ETF). I hope that there are others that are acting on the information provided here. Knowledge without action is fruitless. Acting on knowledge will set you FREE.Â
The Rush to Control Blue Gold
Boone Pickens, one of the most respected investors in the oil industry, has been making large investments in water (blue gold) -Â “many investors view water as the commodity that will appreciate the most in the next decades.”
I will be watching PHO (a water resources ETF) closely over the upcoming weeks.
China Will Grow at About 8-10% For The Next 5 Years
by Monty Guild
8/1/2006
source: http://www.jsmineset.com/
Don’t Worry Be Happy
I know that sounds simplistic and too optimistic, but the fact is, that’s the conclusion I have come to after many long and sometimes exhaustive meetings in China over the past week and a half. I have looked at 20 sectors of the economy past, present and future. Including, transportation, infrastructure, utilities, raw materials, intermediate goods, finished goods, financial sectors, service sectors, agriculture sectors, and many others.Â
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I believe that China will grow, and grow rapidly, for about five more years, which is as far out as I dare prognosticate. However, this does not mean that there will not be problems and scary periods. This does not mean that there will not be politically touchy moments as China moves to assert its leadership in the world: first on an economic basis, and later on a military basis. Also, this does not mean that there will not be naysayers. There are always naysayers. Continue reading “China Will Grow at About 8-10% For The Next 5 Years”
A Simple Relationship to Put Money in Your Pocket
Every US based worker that has attended a 401K planning seminar has heard the same lecture. Diversify your money between US based Large, Mid and Small Cap stocks then mix in some International Stocks and Bonds. Your percent allocation to each sector will vary depending on your age. It must be sound advice if some many professionals agree on this approach. Most will follow this advice tweaking it every now and then. However, with a little more understanding you can outperform those advisors.
Continue reading “A Simple Relationship to Put Money in Your Pocket”
More on Dollar Cost Averaging
I have discussed dollar cost averaging many times and have dedicated two categories to the subject. So, at least everyone reading this site should be clear on its definition. However, I talk to people all the time that continue to confuse it with averaging down. Averaging down is when a stock is purchased at let’s say $20. Shortly afterwards it goes down to $15. Who can pass up on a good sale? So, more is purchased at $15. Now your average price is $17.50. You feel somewhat better, since if the stock hits $18 the entire position can be sold for a profit. Well often the stock continues down and with each additional purchase your average price is lowered, thus the term averaging down. This is also known as throwing good money after bad. It’s like taking a 15 year old car to the auto mechanic. At some point, you are better off just moving on.
Dollar cost averaging is a technique designed to reduce market risk through systematic purchase of securities at predetermined intervals and set amounts. Please review the previous posts and make sure to read the DCA experiment. It is a real time example of dollar cost averaging.
The market is an emotional roller coaster. When it’s up the sun shines brighter and when it’s down – well let’s not go there. This game is not winnable without a systematic approach.
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