Among the millions of people who will watch London’s Olympics, many will tune in to see the element of surprise. Just like the Olympics, I encourage investors to always stay curious and watchful because you never know where the market’s opportunities will be.
The key to investing in global resources is the ability to translate a gas station sign on a street corner to knowing where to find companies that stand to gain from rising or falling gas prices, changing government policies, and growing consumer demand.
When it comes to investing, wise managers are like good drivers, constantly evaluating the environment, looking for signs to step on the gas or slow down. A positive signal on commodities was received recently when Goldman Sachs.
Oil prices rose about 5% last week to finish only a dollar short of regaining triple-digit status. Since dipping below $80 per barrel on Oct. 3, West Texas Intermediate (WTI) prices have increased almost 28%.
The recent dramatic decline in coal stocks has been driven by concerns of a global slowdown, but with equities already down 40% from their July highs, we feel this negative sentiment is already priced in.
Siberia's western oil fields have been a mainstay of Russia's economic growth for decades, but the world's largest producer of oil is now looking elsewhere in its country to replenish its stagnating supplies.
Much has been made of China's appetite for the world's natural resources but demand growth from another Asian giant is changing the dynamics of the steel market. Indian demand for steel grew 10% last year, helping push global demand to a record.