Tom Dyson is the editor of the 12% Letter and a contributing editor, with Dr. Steve Sjuggerud, of DailyWealth. He started his professional career at Salomon Brothers, before moving to Citigroup, where he worked for an international bond trading desk in London. In 2003, he qualified to the Chartered Institute of Management Accountants, left Citigroup and moved to the USA to become a fixed income analyst at Stansberry Research.
Fannie Mae (FNM) and Freddie Mac (FRE) are about to go bankrupt, says 12% Letter editor Tom Dyson.
The bottom line is they are both over leveraged. Waaay over leveraged. They bought $1.7 trillion in assets using only $70 billion of investors’ money. To wipe out investors, mortgage values only have to decline by 1.4 percent. And this has already happened.
Tom says the best way to protect your portfolio from the fallout of a failing Fannie and Freddie is to invest in high-dividend stocks…
Tom Dyson says the biggest headache facing power companies is how to charge customers more for using power at peak times. This would force consumers to change the way they consume power. Peak demand would decline and base demand would rise. And power companies could avoid building expensive peak load power plants. Tom recommends three companies that are in the business solving this problem with ’smart meters’…
Heavy rains and floods in the Midwest will cut the U.S. soybean harvest by 3 percent and push the farm-gate price to a record $12.75 a bushel, $2.60 more than the 2007 crop, reports Reuters.
This is good news for Brazil.
Brazil is the world’s largest exporter of soybeans. It is also fast becoming the world’s agriculture superpower, says Tom Dyson in DailyWealth. But Brazil’s soy business is heavily reliant on fertilizer – and this opens up a huge profit play…
High grain prices aren’t just hurting hog farmers, they’re damaging ethanol producers too.
If prices causes ethanol plants in the Midwest to close, it could flood the market with unused corn, says Tom Dyson. Expect to see a big fall in corn prices in the near future…
Even without ethanol plants closing corn prices are already starting to fall…
Corn prices may have sold off in recent days, but they remain more than double the value of a year ago. This is having a dramatic impact in related industries. Corn is the staple diet of most farmed animals. And as their food bills climb, farmers are feeling the strain. Tom Dyson recently visited Iowa and says farmers there are throwing piglets in the trash — hogs there are no longer worth the feed costs…
Editor’s Note: Between 1987 and 1990 Taiwan’s stock market boomed. Stocks gained 991%. The Taiwanese currency rose another 40%. Foreign investors would have made 14 times their money during this time. Tom Dyson says Taiwan is set for another huge rally. So does Jim Rogers. We’re all ears.
Editor’s Note: McDonald’s (NYSE:MCD) is the cheapest place to eat in the US right now.And 12% Letter editor Tom Dyson says it’s going to get more and more business as the recession puts expensive restaurants out of reach. But are prices going to stay low as McDonalds’ transport and food production costs rise? Only time will tell.
Editor’s Note: Earlier this week 12% Letter editor Tom Dyson put out a Jim Rogers teaser, “The World’s Cheapest Stock Market Is Ready to Soar.” Turns out Jim is investing in Taiwan. Taiwan is cheap. And there’s a catalyst: a new Taiwanese president means trade between Taiwan and China is booming.
An interesting piece from Stansberry Research’s Tom Dyson. A bit of a teaser though. Tom is tipping one international stock market soar.