Continue reading US Steel: A bright future, but it's not a play for squeamish investors

US Steel: A bright future, but it's not a play for squeamish investors originally appeared on BloggingStocks on Wed, 12 Aug 2009 17:00:00 EST. Please see our terms for use of feeds.

This post was written as part of a feature offering ideas from bloggers on ways to make more money in 2009. See all 18 suggestions.

Gold and the U.S. dollar are inexorably linked. The U.S. dollar represents the U.S. economy as a paper asset, while gold represents a standard of international value that transcends national boundaries. The value of both of these asset classes is very difficult to determine. Both are affected by geo-political events and both move up or down as a matter of perception.

Let's look at a few examples. With the large bank bailouts of 2008 and the coming Obama stimulus package, there are those who say that we are way overextended and have printed too much paper money. Those who take this position are the "gold bugs," the ones who are running away from paper assets to the safety of a hard asset like gold. This is where you find predictions that gold will rise to $2,000-$5,000 per ounce. It is this perception of the U.S. economy that drives investors to buy gold.

Then there are those who look at the world a bit differently. They see a world with 6 billion plus people that is running out of natural resources and that will not be able to meet the demand for basic commodities such as food, energy and raw materials. As a result of these shortages, commodity prices will rise to irrationally high levels. This in turn will cause rampant inflation and devalue paper assets even further and make gold even more valuable.

Continue reading 2009 Money moves: Play with gold

2009 Money moves: Play with gold originally appeared on BloggingStocks on Fri, 16 Jan 2009 14:40:00 EST. Please see our terms for use of feeds.

"Even with the poor outlook for the economy, there are many investment opportunities being created by high energy prices and the low dollar," notes Jim Powell. In his Global Changes & Opportunities Report, he explains, "American 'rust belt companies' look especially good."

"Surprisingly, rising fuel prices are making some American manufacturers more competitive and I could not be happier about the improved outlook for many efficient U.S. producers.

"U.S. machine tool makers are starting to take back some of the business they lost to Japan 20 years ago. U.S. imports of Chinese steel are declining dramatically, while domestic production is rising at rates not seen in years.

"The list of U.S. businesses that are benefiting from the new trade relationships will lengthen, but it won't happen overnight. It's not just a matter of being loyal to the home team. America will benefit from creating more real wealth instead of the flim-flam financial products that led to the phony boom.

Continue reading American favorites: Rust-belt resurgence?

American favorites: Rust-belt resurgence? originally appeared on BloggingStocks on Mon, 14 Jul 2008 11:47:00 EST. Please see our terms for use of feeds.

Since 1975, Lakshmi Mittal has turned ArcelorMittal (NYSE: MT) into a global steel powerhouse. As a result, he's worth in excess of $45 billion. Actually, as an indication of his power, Mittal is now a board member of Goldman Sachs Group, Inc. (NYSE: GS).

And, no doubt, his dealmaking is likely to continue. In fact, there are reports that ArcelorMittal will make a play for Rio Tinto Group, which is the #2 ore producer in the world. The company is currently ensnared in a hostile takeover from BHP Billiton Ltd. (NYSE: BHP). Basically, ArcelorMittal may make an equity investment, which could exceed $10 billion.

Why? ArcelorMittal needs to find ways to stabilize its raw material supplies. After all, with pricing pressures, it's important to contain things.

Then again, this may ultimately be mostly noise -- to get traders excited. But, in light of ArcelorMittal's global power, investors will definitely listen.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

Arcelor to jump into the BHP Billiton/Rio Tinto fray? originally appeared on BloggingStocks on Mon, 30 Jun 2008 18:18:00 EST. Please see our terms for use of feeds.

Continue reading China's economy grew at 10.6% annual rate in Q1 2008

China's economy grew at 10.6% annual rate in Q1 2008 originally appeared on BloggingStocks on Wed, 16 Apr 2008 16:31:00 EST. Please see our terms for use of feeds.

Continue reading China's inflation soars -- will it let the yuan float?

China's inflation soars -- will it let the yuan float? originally appeared on BloggingStocks on Tue, 19 Feb 2008 10:22:00 EST. Please see our terms for use of feeds.