"In a year wracked by economic uncertainty and stumbling global stock markets, Russia has been an unlikely standout performer," explains global investment expert Nick Vardy.
"Even as China is now down by more than 50%, bad boy Russia's performance has been second only to Brazil this year and it actually has outperformed its BRIC rival by a hair during the past three months.
"Despite Russia's reputation as a country rife with corruption, scant respect for genuine democracy and the Rule of Law, it's always hard to argue with success.
"Scan the Russian press, and it quickly becomes apparent that the contrast between the collective economic mood of Russia and the United States couldn't be sharper. While U.S. drivers cringe at $4 per gallon gas, Russia celebrates high oil prices as the source of its newfound wealth.
"To add insult to injury, the most recent Forbes 400 list confirms that Moscow now boasts more billionaires than New York City.
"As steel prices continue to climb, one company that is set to profit handsomely is Cleveland-Cliffs (NYSE: CLF)," says Bill Martin.
Adding to the stock's appeal, the editor of BullMarket.com explains, "Event-driven hedge fund Harbinger Capital has been an aggressive buyer of the stock." Here's his review of the situation.
"Shares of Cleveland-Cliffs have been on fire, up over 150% year over year and they have more than doubled year to date. The Cleveland, Ohio-based company is the largest producer of iron ore pellets in North America and a major supplier of metallurgical coal to the global steel-making industry.
"Cleveland-Cliffs benchmarks iron ore prices to the price of steel, so when steel prices rise, so do iron ore prices. The company said all of its North American iron ore mines are producing at or near capacity.
"Cleveland-Cliffs ended the first quarter of 2008 with $186.5 million of cash and cash equivalents and $600 million in borrowings outstanding under an $800 million credit facility. The company expects to generate approximately $700 million in cash from operations in FY08 as it sells through its inventory.
"Event-driven hedge fund Harbinger Capital was an aggressive buyer of the stock in May, paying between $76.96 to $104.75 a share to add to its position in the name. For the month, the firm spent approximately $338.5 million to acquire nearly 3.7 million shares.
"The number one reason I like gold is because of inflation -- now a big problem in the emerging markets and the major economies," says resource expert Eric Roseman.
In his industry-leading Commodity Trend Alert, he says, "One of my favorite companies in the world is Goldcorp (NYSE: GG)." Here, he looks at this gold mining firm.
"Inflation sits at a nine-and-a-half-year high in Asia at 7.5%, a 15-year high in the Euro-zone at 3.7% and in the United States it's at 4.2% -- if you believe government data in the first place. I don't. I say inflation is running closer to 10% in 2008, not 4.2%.
"The cost of living, mainly in food and energy, is now totally out of control and destroying business margins and eroding the purchasing power of consumers, especially in the emerging markets where food and energy consumption devours more than 65% of wages.
"It seems very obvious to me that Asian governments have now lost control of inflation. The same applies to the Gulf countries which peg their currencies to the dollar. And in Europe, the European Central Bank is freaking out because of high inflation.
"In general, investors are still seeing selloffs as buying opportunities even though the majority of stocks are in a bear market. We are not sure how long this can continue.
"Our 'Crazy Investor Index' does not yet show the type of extreme fear that is typical at a bottom, so it will probably mill around in short-term rallies and selloffs until something motivates them to panic simultaneously.
"In the meantime, we prefer to buy excellent companies just as the herd decides to stampede. And while our portfolio is now slightly net short we are adding one new long position: Petroleo Brasileiro S.A., often referred to as Petrobras.
"Global steel producers are thriving, and their stocks are hitting new highs," note Yiannis Mostrous and Roger S. Conrad, who add, "But the best is yet to come."
In the industry-leading Personal Finance, the two advisors explain, "We're still in the early stage of a truly global bull market cycle for steel, and the companies best positioned to take advantage are headed a lot higher." Here, they look at their "Iron Five."
"As is the case with other building blocks of economic growth, steel is enjoying explosive demand from the developing world. And with the world expanding as never before, steel companies are literally selling as fast as they can produce.
"In the August 2007, we highlighted five first-rate global steel producers. Since then, they've returned an average of 67.4%, versus a decline of 3.7% for the S&P 500.
"The Iron Five are five picks that we believe are ripe for even bigger gains. Like the last group, these stocks are often volatile. They're also vulnerable to the possibility of a general stock market slide and most of all to a dip in global demand growth, particularly from China.
"Coal miner Peabody Energy Corp. (NYSE: BTU) looks hot," says Leo Fasciocco, who focuses on stocks that have broken out from technical basing patterns.
In his The Ticker Tape Digest, he explains, "The stock rose above its break points of $81.20, hitting a new high." He adds, "With net set to surge 70% this year, we see an upside target of $105 per share."
"Peabody, based in St. Louis, is a major producer of coal with annual revenues of $4.7 billion. BTU's coal fuels more than 10% of U.S. electricity generation and 2% worldwide.
"The company has mining operations in Appalachia, the Powder River Basin, and the U.S. Southwest and Midwest, as well as Australia and Venezuela. It also markets, brokers, and trades coal, and develops electricity-generation projects.
"Technically, BTU has broken out from a six-week flat base today with expanding volume. It is part of the strong coal group, which has been one of the strongest acting sectors of the market.
Leading advisor Jack Adamo, editor of Insiders Plus, reports that a Goldman Sachs analyst has chosen one of the stocks on his newsletter's buy list -- ConocoPhillips (NYSE: COP) -- as his top pick in the energy sector.
"There was an extremely interesting piece recently in Barron's by the oil analyst at Goldman Sachs who predicted $100 oil back in late 2004. We'd been buying energy stocks for almost a year at that point, but, although I expected oil prices to rise, I had no idea they'd go this high.
"In any case, the analyst, whose name is Arjun Murti, said he expects oil to reach $150 to $200 sometime within the next 24 months. The low end of that range is only a Middle East incident away, but the high end still seems like a reach, especially given weakening economic conditions.
"USEC (NYSE: USU) is the nation's leading supplier of enriched uranium for use in commercial nuclear power plants -- in fact, it is the only supplier," notes value investor Nathan Slaughter.
In Half-Priced Stocks newsletter, he explains, "Low-enriched uranium is commonly used as fuel in nuclear reactors, and no other company in the U.S. provides it, giving USEC a dominant position in a key niche market." Here is his review.
"Its competitive advantage? USEC has the single best competitive advantage there is: zero competition -- at least in the United States. While the firm does have a handful of rivals overseas, it has reaped the benefit of being the lone U.S. supplier.
"The company has also been awarded lucrative contracts to perform work for the U.S. Department of Defense.
"The company also benefits from the nation's longstanding nuclear non-proliferation treaty with Russia. Specifically, it participates in the salvaging of old Soviet nuclear warheads under the 'Megatons to Megawatts' program, which essentially gives the firm a sharply discounted source of uranium.
Although he has been maintaining a cautious stance on the refining group, energy sector expert Elliott Gue is now boosting the rating on Valero Energy (NYSE: VLO).
In his The Energy Strategist, the advisor explains, "Valero is now attractive for three reasons: superior geographic exposure, refinery complexity and a new focus on profitability."
"Our caution on the refining group was due to expectations that crack spreads would be weak through the spring, a period during which spreads tend to widen. Overall, this call was correct: Refiners have underperformed the energy patch since mid-March.
"And longer term, I have some concerns about new refining capacity expansions due to come online over the next few years. As this supply comes online, it could put downside pressure on margins.
"But over the next six to nine months, the refiners look like a compelling play. Gasoline inventories are now back in line with seasonal norms; it's likely gasoline prices will now rally further relative to crude oil. In fact, we're already seeing an obvious spike in crack spreads.
"Luxembourg-based ArcelorMittal (NYSE: MT) is the only truly global steel manufacturer, operating in 60 countries on five continents," says Gordon Pape.
In his Internet Wealth Builder, he explains, "Like all steel companies, ArcelorMittal would be temporarily affected by a world recession but as a long-term international growth stock for your portfolio, it should be a winner."
"When you read through MT's 2007 annual report, you are left with the impression of a company with an insatiable appetite for growth. In just one year, MT entered into a joint venture deal for a steel mill in Saudi Arabia and built a new steel service centre in Poland.
"It also completed the acquisition of Sicarsta in Mexico, thereby creating that country's largest steel producer; received mining concessions in Senegal and purchased a 77% stake in a German gas distribution company to add to its regional energy network.
"It also bought a 51% stake in one of Turkey's largest steel companies and a 70% position in an Italian steel distributor; bought 100% of an Estonian steel galvanizing line.
"Most investors aren't able to grasp this commodities cycle's massive potential. The main reason is that few investors are willing to accept the big transformation that's taking place in several emerging market economies, led by China and India.
"We've been advocating this change for quite some time. And after several years of doing so, investors are more receptive. However, they're not totally convinced yet.
"This is the main reason this bull market in emerging markets and commodities has another strong leg up before it reaches all-time highs. But we're far from that point. Meanwhile, copper remains one of our favorite metals.
"Our long-standing recommendation to take advantage of copper's strength is Freeport-McMoRan Copper & Gold. Copper suffered from supply challenges along with investors' underestimation of its potential early in the year.
"One of my favorite indicators for the energy markets is the quarterly conference calls and earnings releases from Schlumberger (NYSE: SLB)," says energy sector expert Elliott Gue.
In his The Energy Strategist, he explains, "In this quarter's call, Schlumberger's management team was notably upbeat, the most positive on industry growth expectations in more than a year. This is a key shift in sentiment that has broader implications for the energy patch at large."
"Schlumberger's reports and conference calls have proved extraordinarily useful in the past for determining the most profitable trends and investment themes. The reason for that is simple: Schlumberger is the largest oilfield services company and has its hand in just about every imaginable market all over the world.
"In addition, the company has traditionally offered long, detailed conference calls; CEO Andrew Gould often relates far more than the outlook for Schlumberger and offers considerable color and detail concerning trends for the industry in general.
"This quarter's conference call was no exception. Schlumberger's outlook this quarter was far more upbeat than in its third and fourth quarter 2007 earnings calls.
"The co-editors of Vital Resource Investor caution that "no market moves in a straight line, and in commodities, the action is often extremely violent." However, for long-term investors, they offer some favorites in iron ore, aluminum and copper.
"All commodity bull markets are ultimately gored by demand destruction, alternatives and new supply. But it will almost certainly be years before that happens to this one. And that means plenty of money will be made along the way.
"We're still extremely bullish on iron ore as the market remains in deficit and prices continue to rise. Chinese domestic supply has been falling and, if this continues, imports will make up the difference, thereby helping the miners.
"China consumes 51% of the world's iron supply. Portfolio holding Companhia Vale do Rio Doce (NYSE: RIO), the world's largest iron ore producer, will benefit from the shortage in iron ore supply.
"We favor aluminum in the industrial metals sector. We've been advocating aluminum for some time, and the market's finally going our way. Aluminum prices have been impacted by lack of available power in China and South Africa and higher alumina and bauxite prices.
"You must own some gold in this economic environment," emphasizes natural resources authority Larry Edelson who sees the recent setback in gold prices as "an ideal time to buy."
"Gold represents the epitome of the natural resource boom. It is the world's best barometer of inflation and financial crises. When inflation is on the rise, as it is now all over the world, gold thrives.
"And when there are financial crises, as we now have with the plunging dollar and the meltdown in the mortgage markets in the U.S. - gold gets an extra boost. Savvy investors flock to the safety of the precious metal, pushing its price even higher.
"In addition, there's more to the bull market in gold than just inflation and financial problems in the United States. Three billion new consumers in Asia are buying gold hand over fist! Previously in China, investors were not allowed to own gold. Now they can, and they are buying up gold like crazy.
"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.
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