Roseman's Eruptions

Emerging Markets Mania Will End when Commodities Bull Market Concludes

Montreal, Canada

There’s nothing hotter these days than emerging markets.

Emerging markets are all the rage as foreign direct investments surge, IPOs boom across the region and currencies muster their single best calendar year of gains against the dollar in years. Credit spreads, which measure the riskiness of bonds against government securities, continue to narrow and, in some cases, hit new highs as yield spreads contract.

Some Miners Can’t Buy a Profit

Montreal, Canada

Not everyone is making a killing amid $1,370 gold.

Several international mid-cap gold mining producers continue to struggle in this historical bull market for the yellow metal. Output has been cut at several companies in Africa and Russia this year as a host of production bottlenecks cut earnings forecasts.

And therein lies an opportunity for investors seeking an undervalued mining play as gold stocks hit new highs recently.

The Fed’s Encouraging Another Bubble

Montreal, Canada

Central banks led by the U.S. Federal Reserve are creating another dangerous precedent through the extension and acceleration of cheap money. It’s no wonder investors are scrambling to ditch the dollar and gobbling-up hard assets, common stocks and foreign currencies.

No other central bank is creating paper like the Fed. While some central banks are tightening monetary policy, the Bernanke Fed wants to extend a policy of cheap money.

Bullish on Mixed Nuts

Montreal, Canada

I love mixed nuts. They’re not only incredibly healthy, loaded with important Vitamin E, but also provide protein and a dose of “good” fat. I devour a daily mix of almonds at work every day in between meals to satiate my appetite. I probably spend close to $250 a year on nuts, maybe more.

Beware of New Base Metals ETFs

Montreal, Canada

Buyer beware!

That’s my message to investors heavily exposed to commodity futures Exchange-Traded-Funds (ETFs) and or Exchange-Traded-Notes (ETNs).

Over the last five years, ETFs have boomed worldwide. Assets for all ETFs are rapidly approaching the $1 trillion dollar mark with commodities absorbing about 30% of that total.

Yet the game is changing fast for investors in these products.

First Peak Oil, Now Peak Water

Montreal, Canada

The concept of Peak Oil was coined more than five decades ago by a prominent U.S. geologist who many believed was off his rocker because of his outlandish forecasts for long-term oil prices. That supposed “nut” was King Hubbert. That forecast, made way back in 1956, was spot on the money as oil prices have skyrocketed over the past 12 years.

The Cocoa Flip-Flop

Montreal, Canada

Cocoa Puffs enthusiasts rejoice: your favorite cereal is getting cheaper.

One of the biggest bull markets over the last few years has been in the cocoa sector where supplies plunged following big cuts in Ivory Coast production. After four years of protracted supply deficits, cocoa prices are about to head into surplus this year.

The #1 Reason Why I Like Gold

London, England

I have to admit I’m a little uncomfortable by the growing chorus of Gold-Bugs lately, especially amid this powerful run in the gold price since August. Though a pullback is imminent, it will only serve as yet another buying opportunity on the road to $2,500 or $3,000 an ounce in this bull market.

So in times like this when the spot price is acting like a rampaging bull, I remind myself why I’m invested in gold bullion.

Tin First among Base Metals to Hit New Post-2008 Highs

London, England

Tin prices hit a new all-time high on Wednesday, confirming the new uptrend in industrial metals this fall as the bull market resumes. On Thursday, tin hit another high reaching $26,790 a ton, up 60% since January. Copper and other metals have also joined the bandwagon as they rally sharply over the past several weeks.

Gold Still a Buy

Dugald Malcolm, Montreal, Canada.

Since the end of July, gold has been on a tear. From $1,160, it soared $100 to $1,260 in early September, breaking above the 50-day simple moving average along the way. At $1,260 it met resistance levels of the previous highs made back in June. After only a few days of hesitation, however, a strong $23 move broke gold above resistance levels and, since then, prices have not looked back, making new record highs on an almost daily basis.