Most people do not consider water to be a commodity like many of our other vital resources such as agriculture and energy. That’s mainly because it’s not traded on a futures exchange and because in the West we have considered clean potable water to be a right, not a privilege.
Those days are over …
Clean potable water is becoming more expensive, more scarce, and more important than ever for both drinking and growing crops.
As you can see, having enough useable water is a matter of our very global survival.
So how can you take advantage of this incredible market and the opportunities it affords? Actually there are quite a few ways.
Water-Related Stocks
Anticipating all this future scarcity, many money managers invest directly in water supplies by purchasing shares of companies like PICO (PICO) and Limoneira (LMNR), which are basically farming and real estate holding companies. The attraction is mostly for their water rights.
But I think these approaches are very tricky and too tough to accurately estimate the real value of their water holdings.
Stock in companies that are involved in clean water supplies is another idea. One example is Molycorp (MCP).
Molycorp has designed a revolutionary water filtration system to purify the world’s most heavily polluted drinking water sources. This technology was borne from a joint development effort with the U.S. Army for use in man-portable devices that provide soldiers with clean drinking water regardless of the water source.
In my opinion, though, there are far better ways to take advantage of the critical demand in the water market …
Water ETFs
You could consider an exchange traded fund (ETF). One I like happens to be the largest water ETF available.
The PowerShares Water Resources Portfolio (PHO) is based on the Palisades Water Index™ (Index). This Index seeks to identify a group of companies that focus on the provision of potable water, the treatment of water, and the technology and services that are directly related to water consumption.
And if you are looking to leverage your investment for even bigger possible gains, you could use options on ETFs.
No matter which vehicle you decide is the best for this market, rest assured the growing urgent need of the world’s population for clean potable water will continue. And that’s not going to change anytime soon!
Yours for resource profits,
Kevin Kerr
TheTradingReport.com
PICO 29.45
LMNR 22.90
MCP 57.40
PHO 20.00
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Friday, July 08, 2011
Tuesday, July 05, 2011
Special Report Gold
The following quoted from ERSTE GROUP paper - 91 pages
The fact that not many market participants actively participated in the last high of the gold price in the 1970s is a positive aspect. This is probably also why the majority of investors still doubt the sustainability and justification of the bull markets although we are in its tenth year. In
the 1970s it was an unwritten law to invest at least a fifth of one’s portfolio in gold.
“I prophesy that in 1950 every Treasury in the world will be talking about my ideas, and by that time, of course, the problems will be quite different, and my ideas will be not only obsolete but dangerous.” John Maynard Keynes
Gold, as antagonist of uncovered paper currencies, remains an excellent hedge against
worst-case scenarios. Low real interest rates and high counterparty risk provide the perfect environment for gold. Both are clearly the case at the moment, and we expect this scenario to last. At the current real interest rates, gold is an obvious alternative to short-term government bonds, current accounts, or time deposits.
After many years of a chronic low-interest-rate policy, we do not believe that interest rates, along the lines of Paul Volcker’s, would be possible without the system collapsing. Therefore this time the gold bull market should end for different reasons than at the beginning of the 1980s.
July 2011 - In the short term, the seasonality of the gold price seems to suggest the continuation of the
sideways movement, followed by the strongest seasonal period in September. In the long run we could see a future where rather than asking for the price of gold, people will much more often ask for the price in gold.
Our next 12M target is USD 2,000. We believe that the parabolic trend phase is still ahead of us. This phase should take the gold price to our long-term target of at least USD 2,300 at the end of the cycle.
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The fact that not many market participants actively participated in the last high of the gold price in the 1970s is a positive aspect. This is probably also why the majority of investors still doubt the sustainability and justification of the bull markets although we are in its tenth year. In
the 1970s it was an unwritten law to invest at least a fifth of one’s portfolio in gold.
“I prophesy that in 1950 every Treasury in the world will be talking about my ideas, and by that time, of course, the problems will be quite different, and my ideas will be not only obsolete but dangerous.” John Maynard Keynes
Gold, as antagonist of uncovered paper currencies, remains an excellent hedge against
worst-case scenarios. Low real interest rates and high counterparty risk provide the perfect environment for gold. Both are clearly the case at the moment, and we expect this scenario to last. At the current real interest rates, gold is an obvious alternative to short-term government bonds, current accounts, or time deposits.
After many years of a chronic low-interest-rate policy, we do not believe that interest rates, along the lines of Paul Volcker’s, would be possible without the system collapsing. Therefore this time the gold bull market should end for different reasons than at the beginning of the 1980s.
“If you don't trust gold, do you trust the logic of taking a pine tree, worth $4,000-$5,000, cutting it up, turning it into pulp, putting some ink on it and then calling it one billion dollars?" Kenneth J. Gerbino
July 2011 - In the short term, the seasonality of the gold price seems to suggest the continuation of the
sideways movement, followed by the strongest seasonal period in September. In the long run we could see a future where rather than asking for the price of gold, people will much more often ask for the price in gold.
Our next 12M target is USD 2,000. We believe that the parabolic trend phase is still ahead of us. This phase should take the gold price to our long-term target of at least USD 2,300 at the end of the cycle.
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Monday, July 04, 2011
hot air
A woman in a hot-air balloon realized she was lost. She lowered her altitude and spotted a man in a boat below. She shouted to him, "Excuse me, can you help me? I promised a friend I would meet him an hour ago, but I don't know where I am."
The man consulted his portable GPS and replied, "You're in a hot air balloon, approximately 30 feet above a ground elevation of 2,346 feet above sea level. You are at 31 degrees, 14.97 minutes north latitude and 100 degrees, 49.09 minutes west longitude."
She rolled her eyes and said, "You must be a Republican."
"I am," replied the man. "How did you know?"
"Well," answered the balloonist, "everything you told me I suppose is technically correct. But I have no idea what to do with your information, and I'm still lost. Frankly, you've not been much help to me."
The man smiled and responded, "You must be an Democrat."
"I am," replied the balloonist. "How did you know?"
"Well," said the man, "you don't know where you are or where you are going. You've risen to where you are, due to a large quantity of hot air. You made a promise you have no idea how to keep, and you expect me to solve your problem. You're in exactly the same position you were in before we met, but somehow, now it's my fault."
.
The man consulted his portable GPS and replied, "You're in a hot air balloon, approximately 30 feet above a ground elevation of 2,346 feet above sea level. You are at 31 degrees, 14.97 minutes north latitude and 100 degrees, 49.09 minutes west longitude."
She rolled her eyes and said, "You must be a Republican."
"I am," replied the man. "How did you know?"
"Well," answered the balloonist, "everything you told me I suppose is technically correct. But I have no idea what to do with your information, and I'm still lost. Frankly, you've not been much help to me."
The man smiled and responded, "You must be an Democrat."
"I am," replied the balloonist. "How did you know?"
"Well," said the man, "you don't know where you are or where you are going. You've risen to where you are, due to a large quantity of hot air. You made a promise you have no idea how to keep, and you expect me to solve your problem. You're in exactly the same position you were in before we met, but somehow, now it's my fault."
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Saturday, July 02, 2011
golf
An actual sign posted at a golf club in Scotland.
1. BACK STRAIGHT, KNEES BENT, FEET SHOULDER WIDTH APART.
2. FORM A LOOSE GRIP.
3. KEEP YOUR HEAD DOWN!
4. AVOID A QUICK BACK SWING.
5. STAY OUT OF THE WATER.
6. TRY NOT TO HIT ANYONE.
7. IF YOU ARE TAKING TOO LONG, LET OTHERS GO AHEAD OF YOU.
8. DON'T STAND DIRECTLY IN FRONT OF OTHERS.
9. QUIET PLEASE...WHILE OTHERS ARE PREPARING.
10. DON'T TAKE EXTRA STROKES.
WELL DONE... NOW, FLUSH THE URINAL, WASH YOUR HANDS AND GO OUTSIDE, AND TEE OFF.
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1. BACK STRAIGHT, KNEES BENT, FEET SHOULDER WIDTH APART.
2. FORM A LOOSE GRIP.
3. KEEP YOUR HEAD DOWN!
4. AVOID A QUICK BACK SWING.
5. STAY OUT OF THE WATER.
6. TRY NOT TO HIT ANYONE.
7. IF YOU ARE TAKING TOO LONG, LET OTHERS GO AHEAD OF YOU.
8. DON'T STAND DIRECTLY IN FRONT OF OTHERS.
9. QUIET PLEASE...WHILE OTHERS ARE PREPARING.
10. DON'T TAKE EXTRA STROKES.
WELL DONE... NOW, FLUSH THE URINAL, WASH YOUR HANDS AND GO OUTSIDE, AND TEE OFF.
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sign
Down in Louisiana, Reverend Boudreaux was the part-time pastor of the local Cajun Baptist Church, and Pastor Thibodaux was the minister of the Covenant Church across the road. They were both standing by the road pounding a sign into the ground that read:
"Da End Is Near
Turn Yo Self 'Roun' Now
Afore It Be Too Late!"
As a car sped past them, the driver leaned out his window and yelled, "RELIGIOUS NUTS!!!!"
From the curve they heard screeching tires, followed by a big splash... Boudreaux turned to Thibodaux and asked,
"Do ya think maybe da sign should jus' say, 'Bridge Out'?"
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"Da End Is Near
Turn Yo Self 'Roun' Now
Afore It Be Too Late!"
As a car sped past them, the driver leaned out his window and yelled, "RELIGIOUS NUTS!!!!"
From the curve they heard screeching tires, followed by a big splash... Boudreaux turned to Thibodaux and asked,
"Do ya think maybe da sign should jus' say, 'Bridge Out'?"
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