The increase of state-controlled resources is ulitmately bad news for American consumers, says Irwin Greenstein, writing for Contrarian Profits. Not only are state-run resource companies inefficient compared to private sector firms but also many of them are hostile to US interests.
As Eastern Europe plays catch up with Western Europe, it is opening up some great investment opportunities. The Street Authority’s Nick Lanyi says the region’s strong economic growth and high dividends offers an attractive alternative to the stuttering US market. And Nick says he has found an ETF that rounds up the highest-paying stocks in the area…
The ugly truth can sometimes yield beautiful profits, says Irwin Greenstein, writing for Contrarian Profits. But the truth exposed by the US government’s recent round of Wall Street bailouts is that the US actually lost the Cold War in terms of its free-market philosophy. Investors should adjust their portfolios accordingly…
The news that Washington is fast becoming the world’s biggest slumlord through its buyout of distressed mortgages has helped send international markets skyward.
The biggest gains were in Russian stocks. And this could be the situation for quite some time, says emerging markets expert Irwin Greenstein, writing for Contrarian Profits.
The irony, of course, is that Washington and Moscow are now marching in lockstep with each other when it comes to their stance on market intervention.
In yesterday’s Hidden Value newsletter, Andrew Snyder recommended three Russian stocks oversold in the recent market crash. One of those – Rostelecom (NYSE:ROS) – has already made over 35% gains. Andrew says its a good time to book these profits, but recommends readers continue to hold his other Russian picks: Mechel OAO (NYSE:MTL) and Vimpel Communications (NYSE:VIP).
Russia’s main stock markets remain closed this morning after a slump in equities prompted the authorities to suspend trading. Falling commodity prices and financial turmoil have hit Russian investors hard. But Money Morning’s Jason Simpkins says Putin-lead Russia has itself to blame for scaring away foreign investment with its heavy-handed policies.
If you thought Wall Street was bad, try investing in Russia. Today, Moscow’s Interbank Currency Exchange (MISEX) has halted for a third day to prevent a run on local stocks.
Andrew Snyder says when an emerging market such as Russia sells off unexpectedly it opens up great buying opportunities.
Andrew recommends three stocks that have been dramatically oversold in the crash. They are Vimpel-Communications (NYSE:VIP), Rostelecom (NYSE:ROS) and Mechel OAO (NYSE:MTL).
– Another day another bailout. At 6:30pm yesterday evening on Capitol Hill the government’s plunge protection due Hank Paulson and Ben Bernanke announced to lawmakers a plan to plunge $85 billion of taxpayers’ money into insurer AIG (NYSE:AIG) to prevent it from going under. In return, the government will take a 79.9% stake in the company.
– Interests of taxpayers “protected,” according to Fed statement. “Loan is collateralized by all the assets of AIG.” “Loan is expected to be repaid from the proceeds of the sale of the firm’s assets.”
– “The US government will receive a 79.9 percent equity interest in AIG
Mining is an expensive business. So if commodities prices fall sharply many mines are forced to close rather than operate at a loss. When this happens supply tightens and prices begin to recover. Chris Mayer says there are signs this is happening now… and a rally in mining stocks is on its way.
The idea that the rest of the world has decoupled from the US economy has has taken it in the neck this year.
Major emerging markets -including China, South Korea, Russia and India – have seen stocks pummeled, as investors become more risk averse.
Eric Roseman says the fundamentals in these countries are far stronger than those in the US and Europe. Many emerging market nations have saved trillions in dollar reserves and have plenty precious resources to sell.
Eric says a strong rebound is on the cards, but only once US assets stabilize.