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| 11 Investment Themes For 2011 |
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Value Investors Reminder: "Rule #1: Never Lose Money; Rule #2: Never forget Rule #1" |
| 11 Investment Themes For 2011 |
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The following is a guest post by Mobile Guru. Jeff PierceWithout a doubt 2010 filled us with more surprises than anyone could have imagined and with that in mind here are some of my predictions for 2011. One thing I am certain of is that it’s going to be a bumpy ride so let’s all be careful out there as we navigate the financial markets.
1. Oil will hit $125/barrel and we will be paying $4.00/gallon for gas by summer. The sad news is I don’t think anyone will doubt that gas this high is a possibility, if not a certainty. What I would really like to point out is the fact that we are no less dependent on foreign oil than we were two years ago when it reached $150. Was that not a wake up call? I guess not. This year electric hybrid producters like TSLA, will account for 2.4% of the cars sold. Does anyone really think that will have much impact on reducing our reliance on foreign oil? 2. Hybrids are still 3-5 years away from capturing 20% of the market share of cars sold annually. The bottom line is that until they can run 250 miles between charges, recharge in under 10 minutes, and compete in price with gas powered cars, hybrids will be slow to become mainstream. The battery technology is improving, but it needs another factor of 2-3X improvement to get there without the costs making them prohibitive. “the gold and silver shorts are losing control.” He expects gold and silver to blast off higher again in 2011. QE debases the dollar forcing its dollar price even higher. Physical demand has been strong too. Richard Russell (#1 newsletter writer) feels that we are about to enter the wild speculative phase in the gold market. The easy money has been made, but the big money still lies ahead. People keep talking about a “bubble” in gold, but nobody mentions the crashing dollar. 4. Silver scored an incredible 83% increase in 2010 and many experts are saying that $40 silver is in the bag for 2011. Strong physical demand, pressure on JP Morgan to reduce their massive short position in the metal, along with a formal CFTC investigation into silver market manipulation (price suppression) certainly contributed to this monster move.
7. The hottest commodity for 2011 could be sugar Sugar. Legendary investor Jim Rogers urged investors to go long on sugar more than 5 years ago when its price was a fraction of where it is today. Sugar reached a 30 year high a few days ago at 33.5 cents per pound due to tight supplies and adverse weather in Brazil and Australia. Several professional traders whom I stay in close contact with believe that sugar could take out its all time 1974 high of 66.5 cents a pound in 2011. Was sugar one of the best Bull markets in history when it rallied from 1.4 cents in 1966 to 66.5 cents in 1974? There has been a remarkable consumer trend away from high fructose corn syrup to sugar. Check some of the items in your home…ketchup, salad dressing, etc. “No High Fructose Corn Syrup” right on the front label! Jim Rogers, James Turk, and Richard Russell are the type of people that I listen to. They have been passionate about their work, have earned impeccable reputations, and have made fortunes for their loyal followers. So 2011 is dawning bright and clear and without a doubt the rate of change will continue to accelerate in many areas……be advised that we could be in for periods of wild volatility, but the trend is “up” in the year ahead. I’m a long time investor with investment experience in high tech, biotechs and precious metals. I blog on topics that are of interest to me and my goal is to generate intelligent discussion. I don’t consider myself an expert in any one area, but know a little about a lot of things. I believe as soon as we stop learning, we stop living. You can connect with me at SeekingAlpha. Read more: http://www.businessinsider.com/11-investment-themes-for-2011-2011-1#ixzz19w2SbxDN |
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