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Japan: Contrarian Buys from Autos to Housing

This post is part of Japan: A Special Report for Investors.

"The list of those hurt financially by the earthquake include the Japanese government (so don't buy Japan's government bonds), insurance companies (who will make up their losses through higher future premiums) and the unfortunate Japanese people themselves," says Martin Hutchinson.

The contributing editor to Money Morning explains, "Of course, even among listed companies, there will be some losers. Tokyo Electric Power Co. (TKECY), or TEPCO, is the unfortunate owner of the damaged Fukushima Daiichi nuclear power station.

Continue reading Japan: Contrarian Buys from Autos to Housing

Investing in Chile: From Mines to Wines

Chile"Last year's Chilean earthquake and the recent mine disaster have an important lesson: Countries with really good management should be strongly considered by investors," says Martin Hutchinson.

Hutchinson adds, "Well managed countries will be more efficient. they will use resources and labor better, there will be fewer sink-holes of value destruction in the public sector and the uncompetitive private sector and they will generally be more open to new ideas and new techniques.

Continue reading Investing in Chile: From Mines to Wines

Suncor (SU): A 'Must-Have' Energy Holding

"In your father's day, investing in energy was easy; fifty years ago, our fathers simply bought stock in one or two of the Seven Sisters oil companies, sat back, and let the money come in," says Martin Hutchinson.

The contributing editor to The Money Map Report explains, "The 'Sisters' owned pretty well all of the world's oil reserves. They had the world's best oil extraction and refining technology. They marketed the product to motorists, power stations, chemical companies, and all other users of the black gold. They made consistent profits, grew steadily as oil consumption increased, and paid good dividend."

Continue reading Suncor (SU): A 'Must-Have' Energy Holding

Coal: The 'real black gold'

"Oil prices have made the headlines recently," says Martin Hutchinson in The Money Map Reporter. "But the miracle fuel of the 19th Century is coal, the forgotten fossil fuel."

"Coal is located primarily in politically stable, friendly countries - most notably the U.S. market itself. Coal prices have zoomed northward during the past year. The current spot price is around $135 per metric ton, more than double the level of a year ago. Meanwhile, coal production is running way ahead of forecasts.

"In 2005, the World Coal Institute reported production of 4,970 million metric tons, up 78% over 25 years. The main reason for coal's growth is that 80% of China's power needs and 65% of India's come from coal-fired stations.

"Since both India and China are expected to quadruple their power consumption by 2030, most of that increase must come from coal-fired stations. What are the best buys in the sector?

Continue reading Coal: The 'real black gold'

Trio of catalysts set to boost gold

"The recent decline in gold from above $1,000 is prompting gold bears to say that the great gold bull market has reversed itself," says Martin Hutchinson who states, "Let me say right now: They're wrong."

In his Money Map Reporter, he explains, "Thanks to three key catalysts, we may well see gold at $1,500 an ounce this year, if not higher." Here's his outlook and a trio of ways to play this trend.

"These three catalysts – worldwide monetary policy, global supply-and-demand for gold, and gold's past performance – have already ignited a powerful rally that's virtually certain to carry gold to much higher price points, despite the breather the rally appears to be taking right now.

"Don't be fooled. Every rally needs a catalyst – something that ignites and then fuels the bullish trend. As noted above, gold has three. Let's take a look at each of them:

1. Monetary policy: More than for any other investment, gold's price depends primarily on the world's monetary policy. When monetary policy is loose, as it was in the 1970s, gold prices soar. When it is tight, as in the 1980s, prices decline sharply.

Continue reading Trio of catalysts set to boost gold

Taiwan: Invest in the 'other' China

"Taiwan - the so-called 'other China' - is an overlooked gem," says Martin Hutchinson, contributing editor to the top-notch Money Morning.

"With a per capita income of nearly $30,000, and a productivity growth rate of 4% -- more than double the rates enjoyed by Europe and the United States -- Taiwan is one of the world's best bargains." Here, the advisor looks at ways to invest in Taiwan.

"There's no question that the Taiwanese economy is highly dependent on China. Indeed, fully 38% of Taiwan's exports go to China - including Hong Kong - while 16% of Taiwan's imports originate on the mainland."

"Taiwan's inflation rate is a paltry 3%, government spending accounts for a mere 21% of the country's economic activity and the country runs a hefty balance-of-payments surplus. Unlike China, there are no signs of major problems in Taiwan's banking system.

"Thus, even though Taiwan's growth rate is lower than China's 'official' growth rate, the greater stability of Taiwan's economy ought to make the shares of Taiwan-based companies trade at a premium to those based in China. But that's not the case. Instead, Taipei trades at less than half the earnings multiple of Shanghai.

Continue reading Taiwan: Invest in the 'other' China

Symbol Lookup
IndexesChangePrice
DJIA-89.2312,801.23
NASDAQ-23.352,903.88
S&P 500-9.311,342.64

Last updated: February 12, 2012: 01:30 PM

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