I am no longer recommedning CLF or EWZ simply because you can make better gains with KOL and MOS or POT with less risk. The iron growth story is somewhat weak because energy usage is continous while iron use is one time. When you use iron and steel to make a building or ship you no longer need iron for the project, while the building will require a continous infusion of energy to run. I just realized this today. People are need food continously while iron is one time usage. Thus I can no longer recommend Iron or metals companies like CLF. EWZ is also weighed down by mining and oil companies such as PBR, RIO which I no longer like. The best gains are in KOL and MOS I hate to have to do this but I have no choice but to cull the losers and replace with winners. CLF and EWZ are still above where I recommended them, but they suck compared to KOL and MOS. In the long term, oil, iron, steel, potash, coal will all go up, but of all of those potash and coal are the best and I have no choice but to invest in the best.
In April Citigrup said MOS was a $200 stock. And today Goldman added MOS to Convicion Buy list and said MOS is a $195 stock "We find the risk/reward still compelling and would be aggressive buyers of (Mosaic) and (Potash)," wrote analyst Edlain Rodriguez in a report. Rodriguez raised his price target by $50 to $285 for Potash Corp's New York-listed stock, which was up $9.42 at $226.27 on Monday, and raised his 2008 earnings estimates to $11.50 per share from $11.15. He raised Mosaic's target by $30 to $195. http://www.forbes.com/reuters/feeds...09T155132Z_01_N09415629_RTRIDST_0_POTASH.html
I am right and thats what matters. I can read the minds of the funds without having to be a member. The funds are saying buy potash and coal and dump metals and oil. The funds decide what stocks/sectors thrive and which will fall based on fundamentals and other factors.
Glad I took EWZ and CLF off my list.. Cleveland Crap is down 5% and dropping like a stone. NO support at all. Metal stocks and oil stocks suck. The best sectors are coal and potash. Period. I have no patience for crap. Dryshipping, wind, solar, metals, oil, are all garbage. Avoid these.
to some degree, yes, but coal is far far far better than oil. When oil drops just a little the oil stocks get hammered big time where as coal stocks ride higher with less downside and more upside.
That's not true at all. Look at the charts of HES CRK WTI SM etc. There are dozens like these in the mid/small cap space. They all had parabolic runs just like the coal companies.
Coal is the only viable alternative to overpriced oil. india, china, brazil, russia need coal. The strong fundamentals compliment the strong charts.
But you're selectively right. Like when you said no one could make money shorting goog. Or when you said the Dow would hit new highs by Dec 2007. Or...