Hotline for November 27, 2006
A GOLDEN OPPORTUNITY
Hello, fellow subscribers, this is Mark Skousen with your Forecasts & Strategies hotline, where we offer independent advice for the independent thinker. Today's date is Monday, November 27, 2006. Welcome aboard.
Stocks are lower today but commodities are hot again, with the Middle East flaring up (yet again) and the continuing Asian boom. Also, I noticed that the Fed has decided to loosen and the money supply (M2) now is increasing at a 7% clip. Perhaps Bernanke and company are worried about the housing slump.
As a result, gold is back up to $638 an ounce and oil is moving back up to $60 a barrel. We have several ways to profit: In individual shares, buy Goldcorp Inc. (GG, $28.84), the lowest-cost producing gold company in the world; Southern Copper Corp. (PCU, $53.43); and among mutual funds, U.S. Global Investors Fund (PSPFX, $17.14) and Tocqueville Gold Fund (TGLDX, $54.82).
U.S. Global Investors (GROW, $50), which manages several popular natural resource mutual funds, is up 3% this morning and continues to surprise Wall Street. We're up nearly 65% in only a month. Let's raise our first protective stop to $47 a share, at which point we will sell half. If it falls below $40 a share, sell the remaining half.
As we head into the holidays, I see a Santa Claus rally for commodities and stocks. That's a key theme from the December issue of Forecasts & Strategies, which you should be getting in the mail soon. Please click here to view the new issue online.
Later today, Investment U (www.investmentu.com) publishes my interview with Rick Rule, president of Global Resource Investments, and the most successful money manager I have ever met in the natural resource sector. I've known Rick and his wife Bonnie for over 20 years and I will be visiting their home next Monday in California. Rick still sees several bargains in the commodity sector, so be sure to read my interview with him. I asked Rick about Quest Capital (QCC, $2.60), our favorite Canadian merchant bank, and he says that 65% of its portfolio now is in real estate loans and that QCC has an earnings return of 15% a year. This stock is headed higher.
I've invited Rick to speak at the 3-day investment seminar called Skousen CAFÉ at FreedomFest, July 5-7, 2007, on the subject, "The 3 Most Important Lessons I've Learned in the Natural Resource Sector." I hope you will join us for this unforgettable 3-day conference, culminating on 7-7-7 in Las Vegas. For details on all 77 of our speakers, go to www.freedomfest.com, or call Tami Holland, 1.866.266.5101, or e-mail her at tami@freedomfest.com.
Until next Monday, this is Mark Skousen, saying so long, fellow freemarketeers, and remember, AEIOU.
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