What the Smart Investor Should Own
Wednesday, October 3rd, 2007
By Michael Lombardi, MBA for Profit Confidential
Many different types of commodities have increased in value since the tech bust of 2000. Cooper, platinum, silver, uranium — they are all up significantly in price over the past seven years. Today, however, I’m going to focus on two essential commodities that I believe will play an increasingly pivotal role in the global economy.
While the importance of oil as a source of energy dates back to the 1800s, it was a fellow by the name of Henry Ford who created the explosion in the use and need of oil only one short century ago. As for gold bullion, its roots are about 5,000 years older than oil.
What were once considered third-world countries are today becoming increasingly important players in the global economy. China, with one car for every 700 people, is now the world’s greatest producer of cheap labor. One has to wonder: Would Wal- Mart be the world’s biggest retailer today if it were not for the many “Made in China” products it sells to Americans every passing second? As China continues to introduce its mass population to assembly lines, the demand for oil will only increase.
I remember vividly the mid-1980s when oil sold for $15.00 U.S. per barrel. Those days are far gone. I openly predicted in PROFIT CONFIDENTIAL five years ago that we were headed for $100.00 per barrel oil. At $80.00 today, we are getting close.
As for gold bullion, one simple statement sums it up: As the U.S. wisely lowers the value of its dollar against other world currencies; gold will shine as the only viable alternative to the U.S. dollar. And with gold bullion slowly closing on its record price high, one has to wonder if gold is not crying rapid inflation ahead — another pressure cooker for the price of gold bullion.
A smart investor today would own quality oil and gold producing stocks. They were the smart investments to buy five years ago — and they remain in my humble opinion the smartest investments to own for the next five years.
Next Post: A Stock with Growth — and Profit — PotentialPrevious Post: Credit Crisis with a Canadian Twist
Tags: global economy, gold, gold bullion, U.S. dollar
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Michael bought his first stock when he was 17 years old. He quickly saw $2,000 of savings from summer jobs turn into $1,000. Determined not to lose money again on a stock, Michael started researching the market intensely, reading every book he could find on the topic and taking every course he could afford. It didn’t take long for Michael to start making money with stocks, and that led Michael to launch a newsletter on the stock market. Today, Michael only employs the top market analysts and editors. Some of our recommendations have posted gains in excess of 500%! Michael has authored and published over one thousand articles on investment and money management. Along the way to building Lombardi Publishing Corporation, now with over one million customers in 141 countries, Michael became an active investor in real estate, art, precious metals and various businesses. Readers of the daily Profit Confidential e-letter are offered the benefit of the expertise Michael has gained in these sectors. Michael believes in successful stock picking as an important wealth accumulation tool. Married with two children, Michael received his Chartered Financial Planner designation from the Financial Planners Standards Council of Canada and his MBA from the Graduate Business School, Heriot-Watt University, Edinburgh, Scotland.Follow Michael and the latest from Profit Confidential on Twitter
