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.
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.
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.
Underground investor David Fessler, writing at Investment U, says the four best hedges against inflation are gold, inflation-adjusted Treasuries, energy stocks and commodities such as wheat, metals, cattle and fertilizer.
At the beginning of 2009, institutional and individual investors were sitting on a mountain of cash, pulling money out from everywhere – including equities, commodities and municipal bonds. That’s nearly $9 trillion, according to the Federal Reserve.
It’s a lesson that we all can learn – or at least get a refresher course on. Because saving and paying yourself first may be the most important aspects of smart investing. But even more imperative than that is to have the right roadmap to get you to where you need to be.
Casino stocks have been more than down on their luck lately. In fact, they’ve been on the ropes more than one of their prizefighting boxers. And it’s no wonder.
Last week, a few investors started to dip their stubbed toes back into the market. There’s no question we might still see a few more large drops to the downside, but those who are waiting for the “very last correction” will likely miss a significant portion of the next bull-run.