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Wednesday, October 28, 2009

Dow, oil, gold pulling back! What to do ... by Larry Edelson

The temporary market correction I've been looking for is here — both in the Dow and some key natural resources as well.

Oil is back under $78 per barrel. Gold is trading under $1,033 per ounce. The market averages are pulling back as well.

But these are just normal pullbacks that open up new buying opportunities. And they certainly change NONE of the compelling forces that are driving natural resources higher:

1. Supplies are dwindling rapidly: There's a finite limit to how much gold, oil, copper and other critical resources are available on Earth — and in many cases, supplies are stretched thin after decades of mining and drilling.

Plus, worldwide environmental regulations strictly limit the new supplies that could be brought to market. Even in the extremely unlikely event that these restrictions were eased, it would take years to develop new mines and new oilfields.

Conclusion: Normally, you could expect plunging supplies alone to push resource prices higher.

2. Massive new demand from China and India: Until recently, the lion's share of demand for critical natural resources came from the U.S. and other developed nations.

Not anymore! China's and India's economies are expected to grow their economies three, four, even five times faster than ours this year. More than a third of the world's population live in these two countries ... they're moving into the middle class ... and their demand for critical resources is skyrocketing.

Conclusion: This enormous new demand combined with dwindling global supplies can only drive resource prices higher.

3. The falling dollar: Despite last year's record-shattering $1.4 trillion deficit, Washington's spending, borrowing and money-printing binge continues unabated. As a result, global leaders and international financial authorities are calling for the U.S. dollar to be replaced as the world's reserve currency.

Conclusion: Until this dire situation changes, you can expect the greenback to continue plunging, driving the price we pay for critical resources ever-higher.

Resource stocks soaring up to 145%
in just three months!

I began urging you to buy natural resource investments with both hands three months ago. Now, in just the past 13 weeks, virtually ALL of my favorite resource investments have literally gone through the roof:

  • IAMGOLD Corp is up 20.8% ...

  • Anadarko Petroleum has risen 32.3% ...

  • McMoRan Exploration has jumped 43.9% ...

  • Pioneer Natural Resources has soared 58.7%, and ...

  • Coeur d'Alene Mines has rocketed 60.7% higher.

And these aren't even the most spectacular winners in the natural resource sector — not by a long shot!

Over the same period ...

  • Harvest Energy Trust is up 76.9% ...

  • Petroquest Energy is up 85.6% ...

  • Superior Well Services is up 91.2% ...

  • Brigham Exploration is up 115.2%, and ...

  • ATP Oil & Gas is up a whopping 145.4%.

All in just three, short months!

If you're already on board with a robust portfolio of resource stocks designed to help you profit from this monumental megatrend, great! If not, be sure to click here for my full report on this remarkable profit opportunity and make your move before I release a whole new set of recommendations next week.

Best wishes,


Larry Edelson

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