In the waning days of the Great Depression, FDR Signed the Rural Electrification Act of 1936 into law, heralding a new era of growth and prosperity for the nation’s heartland. While electricity was generally available in cities and towns, it was nearly unheard of on farms, ranches and other rural areas. The REA brought electric power to these sparsely populated Midwest farms and ranches. Today the shoe is on the other foot, so to speak.
Earlier this week, T. Boone Pickens, the 81-year-old Chairman of BP Capital, appeared on CNBC’s Squawk Box to discuss the progress of the “Picken’s Plan.”
Back in February, I profiled a great infrastructure “pick & shovel” company. Praxair (NYSE: PX) is a global Fortune 300 company, the largest industrial gases company in the Americas, and one of the largest in the world. Investors saw PX climb up almost 25% before pulling back. Since our recommendation, it’s up almost 10% – and we think it can run even more.
Analysts are starting to pile into the biotech bandwagon now. And for good reason: the AMEX Biotech Index is actually lower today than it was nine years ago. Translated into investor-speak, the opportunities in biotech today are fantastic.
Make no mistake: Government and privately funded investment in public works projects – not bubble inducing, debt-financed consumer spending – will be the guiding light that leads the way out of this recession. The American Recovery and Reinvestment Act – otherwise known as the “Stimulus Bill” – provides $120 billion to begin to address our nation’s crumbling infrastructure.
On April 17, I wrote about the massive train wreck coming in commercial real estate. As it turns out, my estimates of the coming devastation – which seemed outlandish to some at the time – have actually turned out to be too conservative. The problem is far worse than anything that’s been reported so far, particularly when it comes to our icon of consumerism: the shopping mall.
Iron Ore Rising… Is the current rally in stocks is just a bear market variety, or is it the real thing? The debate has been going on for quite some time now…
Oil is trading well over $70 a barrel – at its highs for this year – and just off nine-month highs of $73.20, seen last October 21, oil has been steadily rising. Oil prices have risen nearly 100% since their $38 a barrel lows seen last January.
Most of us aren’t compulsive gamblers, heavy drinkers, or chain smokers. Three habits that over time, are bad for your wallet and – more importantly – your health. But from an investment standpoint, the so-called “sin stocks” – companies that make alcohol, firearms, cigarettes and those that operate gambling casinos – are doing quite well.