No one really knows how long the global recession will last, but based on a recent article it may persist longer than predicted. The message to investors, therefore, is that bonds and gold may be the best way to ride out the storm instead of trying to cherry pick winners.
The commodity “supercycle” isn’t dead, says Justice Litle. Global demand has flat-lined for now, but the fundamental story of emerging market growth has not changed. And low prices are forcing many mines to shut down operations. This means that when demand recovers, it will do so faster than new supplies can reach the market. And that’s when gold will soar past $1,200 an ounce.
For more than a decade, European policymakers have spurned genetically modified crops, but these so-called Frankenfoods are beginning to look more and more appetizing in the wake of food shortages and soaring prices.
Only 21% of Europeans are willing to eat genetically engineered food, according to a survey by the European Commission.
Some nations, such as France, have banned the planting of genetically modified crops, while others like Germany have enacted laws that allowed foods to be labeled as “GM free.”
Bunge Ltd. (BG), fertilizer and oilseed producer, said it will buy Corn Products International Inc. (CPO) for $4.4 billion, or $56 a share, a 31% premium to its Friday closing price.
The purchase will help Bunge expand its product line to include Corn Products’ starches, syrups and sweeteners.
The deal will help Bunge diversify its sources of revenue with a “solid cash-flow business,” Chief Executive Alberto Weissar told Reuters. Weissar expects the deal to be closed in the fourth quarter of 2008 with a bump in earnings coming as soon as late 2009 or early 2010.
Ritchie Brothers… Transocean… Schlumberger. We’ve spent a lot of ink in DailyWealth showing you “domino effect” plays on the global commodity boom.
If this critical resource disappears, it could send the commodities market spiraling into a catastrophic domino effect.
Good lord, haven’t we already had enough preening and posturing by clueless lawmakers over the alleged “manipulation” of the oil markets?
This is the third installment of a new Money Morning series highlighting investment opportunities created by the global bull market in commodities. There’s a classic squeeze going on in the timber markets right now.
Despite what you read from the financial newsletter industry, there aren’t many secrets left in the mining sector.
Whether his travels take our commodities guru, Kevin Kerr, to the Middle East or the Midwest of the U.S., the stories are very similar. Most people are concerned about the rising costs of agricultural commodities. And they should be. The commodity boom is real.