Eric serves as an editor and Investment Director for The Sovereign Society's Commodity Trend Alert. Eric's talents include blending a dozen or more alternative investment funds to produce consistent returns to traditional asset classes and making commodity based recommendations with huge upside and limited downside.
Ten years ago, Asian equities paid pitifully low dividends following the bull market in the late 1990s. But that’s all starting to change as many markets in the region now offer higher dividend payouts than the S&P 500 and many European equity markets…
Will natural gas make a comeback? The odds are pretty good that bargain hunters buying natural gas at today’s bombed-out levels could probably double their money in under a year.
Is the bull back? Not so fast, according to market history.
Since January, deflation in the economies of East and Central Europe, including the Baltic Republics and the Balkans, has started to to pick up steam as banks crash, stock markets collapse and local currencies plunge.
From its high of $147 a barrel last July, West Texas Intermediate Crude oil prices have crashed a cumulative 74%. That ranks as one of the worst absolute declines for any asset since the onset of deflation last July as investors dump most commodities, except gold, silver and several other soft commodities.
The risk of sovereign government default is rising, says Eric Roseman. Several EU outliers have already had their credit rating downgraded. And emerging markets look even more vulnerable, with many currencies under pressure. Eric says investors should steer clear of the high-yielding emerging market debt for the time being.
Market timing matters, says Eric Roseman. Enter at the wrong time and face years of net losses. Get it right, and the gains will be enormous. Eric says US stocks have not hit a bottom yet. But sometime in the next 12-18, investors will have the mother of all buying opportunities.
“This program is intended to fundamentally and comprehensively address the root cause of our financial system’s stresses by removing distressed assets from the financial system.” Treasury Secretary, Hank Paulson, October 2008.
This year’s healing process will begin in the credit – not equity – markets, says Eric Roseman. Even if a big bear market rally emerges, uncertainty and volatility will still plague stock markets. Meanwhile, investors in high-grade corporate bonds can receive historically high dividend payments while they wait for prices to recover.