jse17

MXI: For Investors Looking to Catch the Global Materials Sector's Recovering Momentum

A wonderfully astute mentor taught me many years back that when we know something, anything, or everything, the exact opposite is far more likely to result e.g., a rampant asset bubble looms directly ahead. Additionally, the NR and materials stocks have enjoyed very nice gains and are anything other than cheap ATPIT!

Paraphrasing, it perhaps is a great time to unload on the unsuspecting under the guise that, “we all know XYZ!” Supporting this thought, which of the 3-generally accepted inflationary prerequisites are currently or reasonably near term foreseeable in play:

1) Easy Consumer Credit

2) High Demand

3) Full Employment?

To each his/her own and best of luck to all.



On Aug 07 03:53 PM Robert Martorana wrote:

> Since monetary and fiscal stimulus are pushing us into an asset bubble,
> an ETF in basic materials makes a lot of sense. The MXI is a great
> way to play the reflation rally, while also hedging against inflation.

Stephen Leeb's 'Game Over': Good Advice for Tough Times

"For instance, he quotes Caltech scientist Mark Jacobson’s estimate that the US could take care of the bulk of its energy needs with 700,000 windmills. However, Leeb asks, where on earth would we get the steel to build them?"

Avoiding functional fixation is a critical first step in creating solutions for any problem. The question that jumps to the fore is why must the wind generating system be iron ore based. Additionally, how many years are in play to complete the project?