Important Updates for Investors
Carla Pasternak's Premiere Issue of High-Yield International Just
Released
Income expert Carla Pasternak's debut issue of High-Yield
International covers a Taiwanese manufacturer yielding 9.5%... a
rare Mexican monopoly yielding 13.4%... and other top-performing
investments yielding up to 19.0%.
Government's Biofuel Timetable Could Spell +15,900% Growth
+15,900% growth might seem far-fetched... but it's not. In fact, it
is mandated by law. And I've identified the ONLY stock positioned to
capture this growth.
The
Silver Lining to a Falling Dollar
Despite the U.S. national debt, there is a silver lining for income
investors. This massive spending, combined with movement out of U.S.
Treasuries, is going to take its toll on the dollar, and
international income investors could reap the rewards in the form of
higher dividends. |
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Take China's Lead to Profit
+30% By Year's End |
[http://www.streetauthority.com/includes/article-top-ac.htm]Published:
June 17, 2008
China may have embraced capitalism late in their long, rich history, but
they seem to have taken to it like a duck to water. Their "buy low, sell
high" strategy is putting even the most successful hedge fund managers
to shame. In examining what China is buying and selling right now, the
profitable linchpin appears to be Australia.
China is Buying Australian Commodities and Commodity
Companies
In the first four months of this year, Australian iron
ore exports reached 111 metric tons, up +8% over the same
period last year. Much of that went to China, which doesn't
appear to be slowing down. For instance, China's crude steel
output was 46.5 metric tons in May, almost topping its
record volume set in June 2008.
China isn't just buying commodities from Australian
mining companies. It is also buying interests in the
companies themselves. In the last year, China has picked up stakes in Australia's zinc miner Perilya Ltd and nickel
producer, Albidon Limited. The Chinese also have bought into
Australia's Centrex Metals, Mount Gibson Iron, Gindalbie
Metals and Grange Resources. In February, China plowed
another $19.5 billion into Australian mining giant Rio Tinto
(NYSE: RTP), which could eventually raise its ownership
stake to 18%.
China is Selling U.S.
Dollars
China holds about 10% of America's debt in the form of
U.S. Treasuries. This was a wildly profitable strategy over
the last year. Investors clamored for safe havens during the
market meltdown and pushed the price of U.S. Treasuries to
near record highs. But that trend is starting to reverse and
China is trimming its Treasury holdings while the getting is
good. On Monday, the U.S. Treasury Department announced that
China had lightened its Treasury load by $4.5 billion in
April.
The market's recent rally saw investors ditching
low-yielding Treasuries in favor of investments with higher
returns. Investors are also concerned that the amount of
debt the U.S. will ultimately take on will serve to increase
inflation and devalue the U.S. dollar. These concerns are
already pushing the relative value of the U.S. dollar down
against most foreign currencies -- including the Australian
dollar.
China is Riding a Double Rebound
By investing in commodities and companies with
Australian dollar-based revenues, China is getting the
benefit of two rebounding markets. As my chart below shows,
both the relative value of the Australian dollar and the
London Metals Index are trending up strongly off their lows.
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How You Can Profit From the Double Rebound the Easy
Way
I'm not about to buy a metric ton of iron ore. I don't
particularly fancy trading in the volatile currency market.
And I certainly can't cough up the capital to buy a 10%
stake in an Australian mining company. But I didn't have to
do any of those things to take advantage of the upward
trends in foreign currencies and commodity prices.
One of the first additions to my
Stock of the Month newsletter's "Real Money"
Portfolio was an Australian closed-end fund. It is heavily
weighted in Australian mining companies along with some
stalwarts from other Australian industries. At the time, I
was able to pick up the fund at a discount to its
net asset value (NAV) and lock in a double-digit
dividend yield. The fund is up over +30%, without factoring
in the rich dividend, and I fully expect it to deliver
another +30% before the year is over.
In the last few days, we've seen a slight pull back in
commodity prices and the relative value of foreign
currencies, both driven by a temporary strengthening of the
U.S. dollar. This is creating an opportunity for investors
looking for double rebound entry point.
This fund is currently trading at a premium to its NAV
and is yielding about 8.7%. While this is still a good place
to stake a position, I think if the pullback continues for
the next few days, you could end up with a real bargain and
a double-digit yield to boot.
Always searching for the next great idea...
[http://www.streetauthority.com/includes/editor-profiles-ac.htm]
Disclosure: None.
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Investing Doesn't Get Any Easier Than This |
Stock picker Amy
Calistri's strategy is as simple as investing gets -- just one idea
a month designed to make money in today's market. Invest this way
and you don't have to worry about oil prices, automaker bailouts, or
what the Fed is up to -- because every "bad" economic development
actually helps some investment or another.Your investing life can
get a lot simpler -- starting today.
Go here to learn about Amy's simple investing strategy.
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