The 10 Hottest Global Profit Opportunities to Follow for the Next 18 Months
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For the first time in modern history, the US economy finds itself back with the masses, flying coach instead of first class. These shocking facts say it all:
- From 2005 to 2010 alone, worldwide wealth will soar from $118 trillion to more than $200 trillion — with the newly capitalist markets of Asia and Europe accounting for the biggest share.
- Over the next 25 years, America’s share of the worldwide economic pie will slip from 28% to 24%…
- While during that same stretch Asia’s share of the global market will almost double — meaning it will account for a whopping 55% of the global economy by 2030.
Money Morning managing editor William Patalon III has put together are 10 that hottest profit opportunities in the global capital markets at different times over the next 12 months or more.
1) Cash in on the Cash Barons: Sovereign wealth funds from China and the Middle East are pouring billions into stocks too many investors would rather ignore.
2) Energize With Energy: Energy will be a recurrent theme in the months to come - and not just in terms of oil and gasoline. Crude oil will remain in the forefront of the profit plays to come. But that’s not all: Alternative energy opportunities such as uranium and so-called “green energy” investments will benefit from soaring prices for conventional energy sources. When it comes to these profit plays, it will pay to keep all your bases covered.
3) Buy into Buyouts: Mergers and acquisitions, management buyouts and private-equity deals helped fuel the record run in the U.S. stocks in the first half of 2007. The subprime-mortgage mess and ensuing credit crisis will make it tougher to do deals in the next 12 months, but the choicest buyouts still will get done.
4) Build With Biotech: This isn’t your father’s biotech sector. No longer are we talking only about the “Big Pharma” drug-development firms. Some of the biggest players are now trying to solve the world’s food and fuel shortages - with some notable successes. With special, more-environmentally friendly herbicides and higher-yielding, genetically engineered crop seeds, these companies have already engineered big increases in sales and profits - and there’s a lot more to come.
5) Home in on Housing: Housing’s down, but it’ll never be out. The turnaround is still some time off, but this sector isn’t going to go away. It’ll take careful and patient investing to profit here, but keep the sector on your radar screen - if for no other reason than to use it as a barometer for the rest of the currently moribund U.S. economy.
6) Invest in Income: Studies show time and again that income is key to any portfolio’s success. And those same studies show that if you call the dividend play during a bearish market, your portfolio will easily beat “the spread” - in this case, the market averages as measured by the Standard & Poor’s 500 Index and Dow Jones Industrial Average. And if you can’t decide between stocks or bonds for income, don’t flip - our report covers both sides of the coin.
7) Hit the “BRICs:” BRIC is a Goldman Sachs Group Inc. (GS) acronym for “Brazil, Russia, India and China.” Three of the four - Brazil, India and China - are not to be ignored in the months to come. After the wild ride Chinese stocks have provided in recent months, too many U.S. investors are ready to give up on the Red Dragon. Don’t make that mistake. We’ve seen some life in China’s stock market in recent days, and there will be plenty of ways to profit from that emerging economic colossus, some of which involve only moderate risk. [To find out how you can obtain a free copy of investing guru Jim Roger’s new bestseller, “A Bull in China,” which details investing strategies for that burgeoning market, please click here].
Go for Gold: The yellow metal has enjoyed a record run. And it’s subsequently dropped back. But don’t let that disappoint you: With global demand for commodities of all kinds soaring, there’s plenty of yardage left on this play. Besides, if inflation escalates as many experts expect, gold will provide a terrific portfolio hedge.
9) Couple up With Commodities: The gangbusters global growth that’s causing gold and crude oil prices to “go long” is having the same effect on such commodities as wheat, corn and soybeans. Even Jim Rogers says the global demand for commodities is only going to escalate, meaning this is a play you can call now with a high degree of confidence and score again and again.
10) Don’t Give up on the Greenback: The U.S. dollar has been sinking against virtually every other major currency, a trend that could well continue for some time to come. That doesn’t mean you should ignore the greenback. Run a reverse and look for ways to profit on its pain. Not only will you score now, you’ll be focused in and ready to profit when playing field changes and the U.S. greenback reverses course on its own run for the end zone.