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Posts with tag Pamela Aden

Deflation or hyper-inflation? Gold or bonds?

"There's no question these are dangerous times and the financial world is in uncharted waters," caution resource experts Mary Anne and Pamela Aden.

In The Aden Forecast, the sisters offer an exceptional in-depth discussion on inflationary vs. deflationary foreces, their outlook for precious metals, and their top gold and silver positions for long-term investors.

"The global financial system is on very thin ice, teetering on collapse. Global central banks clearly are literally pulling out all the stops to revive lending and the world economy.

"Will these efforts work? Will they be enough? Those are the most important unanswered questions of the day and only time will tell, but we should know much more in the critical month or so ahead. Why?

"The Fed is spending money at an astronomical rate. It's creating this money out of thin air by monetizing bad debts and whatever else it has to. Remember, this is on top of all the other ongoing government expenses and it's extremely inflationary.

"Normally, there is a lag of about a year or so between money creation and inflation but eventually, what's recently happened will result in massive inflation, a much lower U.S. dollar and a soaring gold price.

"The bottom line is this, if the banks start to lend again, then the economy will be on the road to recovery and inflation. But we know the banks are scared and they're being extremely cautious, for good reason.

Continue reading Deflation or hyper-inflation? Gold or bonds?

Resource favorites from the Aden sisters

"A once in a lifetime super bull market in commodities is underway," note resource experts Mary Anne and Pamela Aden. Here, the advisors look at some favorite commodity stocks in their The Aden Forecast.

"Commodities are in a mega super rise is because of the dramatic changes in the global economy. The rise that started in commodities in 2001 has continued to expand over the years and we believe the upmove is just warming up and it has years to run.

"There are several reasons for this. The weakening dollar and low interest rates have certainly helped push up the whole sector while investment demand grew as an inflation hedge. But the key reason why the commodities are in a mega super rise is because of the dramatic changes in the global economy.

Continue reading Resource favorites from the Aden sisters

Aden sisters: Outlook on gold

"Keep your gold for the long-term; it's today's best investment," says Mary Anne and Pamela Aden in The Aden Forecast. "Despite normal ups and downs, we strongly believe you'll be glad that you held hold onto your gold."

"Gold, silver and most of the gold shares are about the only markets to show gains so far this year. Everything else is down, and in many cases down sharply. Gold has recently been hitting new, or multi-year highs against the euro, the Dow Industrials, bonds and oil.

"In other words, it's stronger than these other markets. Gold is outperforming them and the percentage gains are greater in gold compared to all of the other markets.

"Simply put, gold is where you want to be. Silver is good too. These are the best markets. That's why we've consistently stressed keeping a large part of your investments in gold, silver and their shares.

Continue reading Aden sisters: Outlook on gold

The Adens: Best bets in gold & silver

"Will there be a recession or not?" asks Mary Anne and Pamela Aden. In The Aden Forecast they note, "The scales are now tipping to inflation," which they view as bullish for gold and silver.

"Sure, the economy will probably slow down in the months ahead and stagflation is also a likelihood. That is, slower economic growth combined with inflation.

"The Fed and the world's largest central banks are working together in a massive, historical concerted intervention to provide all the money and liquidity that's globally needed to keep things rolling along. Money supply, for instance, is soaring at a 16% growth rate, the most in 47 years.

"The latest producer price figure strongly supported our view since it was the highest in 34 years, showing inflation running at a 38% annualized rate. Since producer prices lead consumer prices, this is a huge red flag that big inflation is coming.

"The new record high in the gold price is telling us the same thing, and so are the record highs in oil and the commodity markets. In other words, if a serious recession were coming, gold and commodities would not be soaring.

"Gold is an inflation barometer and the action in this market alone is signaling that inflation will very likely dominate the economic scene in 2008. Inflation is bad for bond prices. It usually means higher interest rates and this time is not an exception.

Continue reading The Adens: Best bets in gold & silver

Best Stocks for 2008: ETF favorites with Materials (XLB) and Brazil (EWZ)

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.

"There's no question that this booming growth in the emerging countries has been a huge factor driving the strongest markets," explains Pamela Aden, editor of The Aden Forecast.

"Three billion people are now participating in the global economy who weren't involved before and that's a dramatic force.

"As these countries build their infrastructure, demand for raw materials has soared. Again, this mega-trend is poised to continue, along with strong growth.

"My favorite conservative way to play this trend is with the Materials Select SPDR (ASE: XLB), which moves with the raw materials sector. Instead of picking individual stocks, this provides a good way to generally profit from what's happening globally.

Continue reading Best Stocks for 2008: ETF favorites with Materials (XLB) and Brazil (EWZ)

Top resource ideas: Gold and silver from the Aden sisters

This article is part of a 20 article special report on "Metals, miners and money".

"Gold's recent move to a new highs clearly reinforces that the metal's six year bull market is alive and well," say leading resources experts Mary Anne and Pamela Aden.

In The Aden Forecast, the sisters -- who have accurately forecast the bull market since its start in 2001 -- explain why they believe this upmove is part of a mega-trend that will last for many years to come.

"As the dollar falls further, gold will continue to head higher. And the unprecedented trade deficit nearly guarantees that the dollar will continue to slide. Lower U.S. interest rates reinforce this as well, and again that'll be good for gold.

"Meanwhile, U.S. dependence on foreign oil and the record high oil price means the trade deficit is going to stay huge. It'll also contribute to inflation by keeping upward pressure on consumer prices.

"So in a way, it's a vicious circle that goes something like this: high oil = large trade deficits = a weak dollar and high inflation. Spending and money creation = inflation, which all = higher gold.

Continue reading Top resource ideas: Gold and silver from the Aden sisters

Top resource ideas: 20 advisors on metals, mining, and money

Gold and silverWhat are the best speculations and investments among metals, miners, and other resource plays? To find out, I turned to 20 of the nation's leading newsletter editors, as well as speakers from the recent New Orleans Conference, a leading forum for resource advisors.

Their current top ideas cover a wide diversity of ideas, from gold and silver, from alumina and copper, to platinum and palladium. These picks cover markets from Chile to China and from Canada to Russia. These ideas also range from large cap, well-established, and diversified companies to small cap, development-stage junior speculations.

Readers should only consider these ideas as a starting place for their own research and should keep in mind the caveat that any stock you buy should only be considered within the framework of your own time horizon and risk parameters. Meanwhile, here are 20 different advisors assessing various aspects of the metals, mining, and resources sectors:

Continue reading Top resource ideas: 20 advisors on metals, mining, and money

Best energy ideas: The Aden sisters' energy favorites

"The asset boom continues," say Mary Anne and Pamela Aden in The Aden Forecast. "All of the pieces have fallen into place. Following the Fed's move to lower interest rates, a recession is now less likely than it was a month ago, while inflation is now more likely.

"There is really every reason why oil should stay strong. Tensions in the Middle East with the threat of possible supply disruptions alone will keep pressure on the oil price. Then we still have the chance for hurricanes threatening the Gulf of Mexico's platforms, refineries, and pipelines.

"The reason this is so sensitive is because the world is dependent on oil and this demand is growing by leaps. As our good friend Doug Casey notes, The International Energy Agency reported that they see an oil supply crunch within five years that will force up prices to record levels and increase the West's dependence on the OPEC cartel.

"This is a very real possibility and in spite of temporary dips as we saw with the credit crunch, high oil is here to stay. Our first technical target has been $90, with a further move to $100 after that.

For new energy positions, the Aden sisters recommend Schlumberger Ltd. (NYSE: SLB), Diamond Offshore Drilling Inc. (NYSE: DO), and Transocean Inc. (NYSE: RIG). For investors who want a diversified portfolio of energy holdings, they recommend the Energy Select SPDR (AMEX: XLE) and the iShares S&P Global Energy Fund (NYSE: IXC).

Each day, Steven Halpern's TheStockAdvisors.com features the latest investment commentary and favorite stocks of the nation's leading financial newsletter advisors.

BHP Billiton: 'If you could buy only one'

If you could buy only one commodity stock, what should it be? Mary Anne and Pamela Aden, long-standing experts in the natural resources sector, think that one stock should be BHP Billiton (NYSE: BHP).

The editors of The Aden Forecast explain, "The hot Asian markets are keeping demand strong for commodities. Indeed, the commodity move has been gearing up, one by one. Some markets will be stronger than others at times, but they are all in a major rise with demand being the driving force, which makes this mega move even more powerful."

The advisors continue, "China and Asia in general have been booming for many years now. The slowing economy in the U.S. caused concern that the fiery growth in Asia would cool down. It certainly could with time, but so far there are no signs of this at all."

Meanwhile, they notes, demand for raw materials remains and 2007 may end up seeing China's economy expand at the fastest pace in 12 years. To benefit from this trend, the sisters says, "BHP Billiton has long been one of our favorites because it's the best way to stay invested in the whole raw materials sector."

They notes that Billiton is the world's largest mining organization, stating, "It's a leader in steel making, it's the world's third largest producer of copper and nickel, second largest exporter of coal, fourth largest producer of uranium... and the list goes on." They conclude, "So if you have to buy just one natural resource company, let it be BHP."

Each day, Steven Halpern's TheStockAdvisors.com features the latest investment ideas and market commentary from the financial newsletter community.

An easy way to invest in currencies

Historically, currency trading had been done through futures accounts, making this the realm of sophisicated traders and currency professionals. But with the advent of exchange-traded funds that replicate movements in global currencies, even the novice can now participate.

I'd caution, that despite the ease with which one can now trade currency-based ETFs, understanding the inter-relationship of currencies and forecasting moves in individual currencies remain complex topics.

Two advisors with a long-standing expertise in this area are Mary Anne and Pamela Aden -- who offer their outlook for the US dollar, and their top picks among currency ETFs.

They explain, "Interest rates are an important influence in the currency markets." In their newsletter, The Aden Forecast, they continue, "Currently, U.S. interest rates are higher than the euro rate. But euro interest rates are rising and they're at a five year high, while the rise in U.S. rates is slowing down and the next direction for U.S. interest rates is likely down. That now makes the dollar unattractive and the euro more desirable.

In other words, the sisters explain, "The dollar's interest rate advantage has diminished and that's very bearish for the dollar."

This is serious situation, they note, especially since many countries are diversifying out of their dollar holdings. As an example, they cite China. The sisters observe, "China has formed a new agency that will diversify their massive trillion dollar reserves into other currencies."

In addition, they note, "As the dollar heads lower, other countries could speed up their diversification plans as well, which would help fuel the dollar's decline and boost the euro as demand for the euro grows."

If as they suggest, the US dollar is headed lower, then select foreign currencies will rally. To play this expected trend, the sister recommend that investors hold positions in foreign currencies through exchange-traded funds.

Their recommended positions are Australian Dollar Trust (NYSE: FXA), the Euro Currency Trust (NYSE: FXE), the British Pound Sterling Trust (NYSE: FXB), and the Swiss Franc Trust (NYSE: FXF).

For more stock picks from the leading financial newsletter advisors, visit Steven Halpern's free daily website, TheStockAdvisors.com.

Top Picks 2007: Golden gains for Pamela Aden

Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.

Pamela Anne Aden, turns to gold for both her favorites for 2007 -- selecting the exchange-traded fund streetTracks Gold Trust (NYSE: GLD) as her conservative investment and Market Vectors Gold Miners Trust (ASE: GDX), also an ETF, as her top speculation.

In The Aden Forecast, the resource sector advisor notes, "There are several reasons why the metals and commodities markets are likely headed higher in the upcoming years. Aside from the ongoing demand out of China and other emerging nations, gross financial imbalances are taking their toll too.

"In recent years, the U.S. has gone heavily into debt. At the same time, China has built up the largest cash reserves in the world. The end result is the largest U.S. budget and trade deficits in history, and this has caused the U.S. dollar to fall over the past five years.

"Since gold and the dollar generally move in opposite directions, these imbalances have also been an important factor driving gold higher. This major financial shift is unlikely to be resolved soon. That means gold and gold shares are poised to rise further in 2007.

"One way to take advantage of these trends is buying the gold ETF, streetTracks Gold, which tracks the price of gold bullion and is a conservative way to invest in this market. The ETF for gold shares -- Market Vectors Gold Miners -- which tracks individual gold mining companies, is a more speculative way to play the sector."

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Last updated: December 04, 2008: 07:05 PM

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