What the "$15 Million to $460 Million Man" Is Saying Now
By Dr. Steve Sjuggerud
Friday, September 11, 2009
From 1998 to 2006, Rick Rule turned $15 million into roughly $460 million (before fees) for his customers.
Earlier this week, Rick explained what you should do with your money now. He was on a conference call for his Global Resource Investments (www.gril.net) clients. (I am a client of Rick's. That should tell you something about how I feel about him.)
One thing that distinguishes Rick from his competition is this: He'll tell you when it's NOT a good time to invest. On the call this week, Rick told us that now is one of those times...
Rick thinks the overall markets will start to falter. And he believes a fall in the overall markets will bring down natural-resource stocks, too. That fall will bring the opportunity he's waiting for.
Rick's area of expertise is natural resources – like energy and metals. He says resource stocks are overvalued now and will follow the market lower. Eventually, the overall market and resource stocks will "bifurcate." Then, resource stocks will soar while the rest of the market lags.
In previous conversations with Rick, he's told me that's why he's still working... While his track record from 1998 to 2006 will be difficult to repeat, Rick thinks there's an extraordinary bull market in natural resource stocks just around the corner... one worth delaying retirement. We're just not there yet.
Looking five years ahead, Rick is "extremely bullish on energy prices." He says the rise will be triggered by a fall in oil production from major producers. Oil production in countries like Venezuela, Mexico, and Iran will drop rapidly in the next five years. The opportunity is coming... but we're not there yet.
Rick also says we could see a "once-in-a-decade" opportunity in the next 12 months in investing in natural gas. But once again, we're not there yet.
Are we "there yet" in anything? Yes!
Rick is particularly bullish on alternative energy...
He's only interested in alternative energy technologies that make sense WITHOUT government subsidies. This requirement narrows the list down to just a couple energy technologies and only a small handful of companies. (Out of respect to Rick and his business, I can't share his exact ideas with a broad audience.)
Rick Rule is great at what he does. I have even more respect for him when he DOESN'T invest my money, which has been the case recently. During these times, I know he earns no commission or sales fee... but he's doing the right thing, waiting for the right time.
Right now, Rick believes the overall market could fall and bring natural-resources stocks with it. So play defense. Take your tax losses, take profits, and set trailing stops on big stocks you want to own.
Then get ready. The big opportunities are coming in natural resources, possibly within the next 12 months. Rick could be wrong, of course. But his track record is hard to argue with...
Good investing,
Steve |
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THERE IS AN AMAZING UPTREND IN STARBUCKS RIGHT NOW
Add Starbucks to our list of great "armchair" economic indicators.
It's one of the first places folks go when they have extra money to throw around. After all, you don't need to spend five bucks on fancy coffee when you can make it at home for 10 cents. This makes the company's share price an instant read on the consumer's mindset... much more instant and useful than an economist blathering about consumer confidence.
Today's chart shows that – for better or worse – the consumer is throwing money at expensive coffee again. After taking a beating in 2008, Starbucks has gained 140% in the last six months... and 47% in the last two. (Many other "spending stocks" are soaring as well.)
There are plenty of reasons to believe the economic recovery and stock rally aren't built on a solid foundation (debt and debt are the top two). But we've found the single most important rule for investment and trading success is "never fight the trend"... Never stubbornly hold on to a belief when the market is moving against you. The great speculator John Maynard Keynes put it best with his classic quote, "The market can stay irrational longer than you can stay solvent."
Irrational or not, the trend of folks spending money on fancy coffee, copper inventories, and stocks, is UP. It will end when it ends.
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Job openings fell to the lowest level in nine years in July, according to a Labor Department report Wednesday, as businesses remain reluctant to hire despite signs the economy is improving.
The department's Job Openings and Labor Turnover survey, or JOLTS report, found that businesses and government advertised 2.4 million open positions on the last day in July, down from 2.5 million in June. That's also the fewest openings since the department began compiling the data in December 2000.
The report underscores the tough competition that jobless Americans face. With 14.5 million unemployed people in July and only 2.4 million openings, that means there were six unemployed people, on average, for every job opening.
– USA Today
Developing-nation stocks rose [on Thursday], driving the MSCI Emerging Markets Index to its most expensive level in nine years, as Indian software makers rallied and higher oil prices boosted the revenue potential of economies sustained by exports.
The MSCI Emerging Markets Index increased 0.4 percent to 883.13 at 9:46 a.m. in New York, pushing valuations to 19.9 times reported earnings for the first time since June 29, 2000, according to data compiled by Bloomberg.
Emerging-market shares have risen 56 percent this year as government stimulus packages, bailout loans and interest-rate cuts from Hungary to China fueled optimism that the worst of the financial crisis is over.
"Valuations have been pushed up very aggressively," said John Lomax, head of global strategy for emerging markets at HSBC Holdings Plc in London.
– Bloomberg
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Wednesday, September 9, 2009
Why I'm Keeping My Portfolio in Maximum Defense Mode
Tuesday, September 8, 2009
If The Stock Market Falls, Will Precious Metals Stocks Fall Too?
Saturday, September 5, 2009
Gold to Stay Above $1,000 This Time Around
Friday, September 4, 2009 |
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