Savings Experiment: Snow Removal
The Money Man Behind Rick Santorum: Who Is Foster S. Friess?"In a few years we'll be staring at new highs in the prices of many natural resources," says Larry Edelson, a specialist in resource-related stocks. In Real Wealth, he looks at two exchange-traded funds focused on food and water.
"Mind you, the U.S. and global economies will not get back to the growth levels we've recently seen, not anytime soon.
"But they don't have to for natural resource prices to soar again. The chief reason they will climb again: Massive, worldwide currency devaluations, especially in the U.S. dollar.
"Moreover, natural resources will get a huge boost from the massive infrastructure spending that is now commencing around the world. I expect two key sectors in particular to get a big boost, almost immediately - agriculture and water.
"Consider sugar, which recently climbed to a six-week high. Or coffee, which like sugar, is also seeing supplies shrink as Brazilian producers cut production, crimping coffee output by as much as 20%. Or cocoa, which recently hit 20-year highs.
"Meanwhile, the global water crisis is also poised to be a major beneficiary of the various economic stimulus programs popping up around the world. Billions of people on this planet do not have access to clean, drinkable water; and the problem is getting worse.
"In fact, it's the number one infrastructure problem facing dozens of countries all over the world. And as governments dole out cash on infrastructure projects, you can bet that water issues are finally going to get massive amounts of attention - and a nice chuck of government money that's sorely needed.
"I recommend buying PowerShares DB Agriculture Fund (NYSE: DBA), an exchange-traded fund that tracks the Deutsche Bank Liquid Commodity Index-Optimum Yield Excess Return Index, which reflects the agriculture sector.
"I also recommend the PowerShares Water Resources Portfolio (NYSE: PHO), an ETF that tracks the performance of the Palisades Water Index, which is comprised of companies that focus on the treatment and provision of potable water.
"One important note: Do not overcommit to these positions, since risk and volatility in the markets will remain high."
Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
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Reader Comments (Page 1 of 1)
3-19-2009 @ 6:52AM
mahesh_sorout07 said...
respected sir, i am the first class diploma holder in agriculture technology and want to do the job in government sector and private sector where it possible i have passed my diploma in the year of 2005 and no got any job to related this firld so please guide me about that i shall be highly thankful to you for this act of kindness
mahesh kumar
diploma in agriculture technology from state board of technical education haryana