Mtn153

Biodiesel: An Economically Viable Alternative Energy?

Mr. Lee,
I believe that you missed one REALLY important aspect of renewable fuel production. I'm referring to Brazilian Sugar Cane Ethanol. I'm told that you can get 800% more ethanol per acre from sugar cane that corn. Also, sugar cane doesn't need the expensive fertilizers and pesticides being used on corn (which are also causing real problems to the shrimp harvest in the gulf) and it comes at a higher octane. The Brazilians have so much that they are exporting it! Also, Archer Daniel Midland just announced several weeks ago that they like Brazilian Sugar Cane Ethenol so much that they are going to build four plants in the U.S. to refine surplus Brazilian Sugar Cane. Also, you seemed to have missed another news release several weeks ago from Rice University that two of their professors have found a very cheap way to produce that Glycerin byproduct into more Ethenol. Personally, I think that process is going to scoop the market as it will reach the retail market far below the price of gasoline!

Does the ETC Explosion Spell Trouble For Financial Services Industry?

Anybody out there want to make a few wagers about what will happen to the price of oil after VP Cheney leaves the White House and the "real" oil investigations begin? Has anybody noticed the huge change that took place in the XOI/Inflation chart shortly after the "Energy Summit"? If you look at a chart going back 20 years, you should find that the XOI and Inflation ran pretty much together. Suprisingly within several months of the "Energy Summit" they began to deverge. Since that change, Oil is up about 200% while Inflation is up only about 16%. Interesting, huh? Nope, not China or India as they are not growing nearly that fast. Nope, not the dollar as it is down only about 30% since then. Anybody have any answers? Could it be an "Enron type" conspiracy? Think that we might find out in 2009? I'd put my money on that. Any other thoughts?

Brazil ETFs Are On Fire

Dear Tom,
You've hit the nail on the head with your report on Brazil. I find myself in disbelief at the number of articles that are coming out about other countries, while missing Brazil. Their government has been very aggressive about chasing American corporations and encouraging them to move to Brazil with sweetheart deals on taxes and assistance with plant manufacturing costs, etc,etc(Johnson and Johnson is a great example). Small wonder that they are doing so well! Personally, I think that they are going to continue to grow at the top of the group because of a number or other reasons. First, they are energy independent. They have so much high octane Brazilian Sugar Cane Ethenol that they are already exporting both cane and ethenol. Archer Danials Midland (the biggest ethanol producer) just annoounced that they are going to build four processing plants to refine Brazilian Sugar Cane in the U.S. I'm told that you can get about 800% more gallons of ethanol from Brazilian Sugar Cane than you can from corn and without the costly fertilizers and pestisices. Perhaps American Farmers will take heed? Secondly, they have vertually no Muslims which means that they have no part in the developing Muslim/Christian Wars. Thirdly, they have a growing manufacturing center thanks to NAFTA and Fourth, they have a growing well educated middle class which appears to be at peace with their government. Again, thanks for a great, timely and insightful report! Now if more of the financial media will just wake up to this gem of a country......
Mike

iShares Asia Region ETFs Weekly and YTD Returns

While those Pacific Rim ETF's are doing well, I'm really suprised that you have overlooked the ETF's of Latin America as they are out performing the funds you mentioned be it one year or going all the way back to the bottom of 2002 (450%). If you follow the movement of manufacturing (thanks to NAFTA) by American companies overseas, you will note that by far, more are moving their operations to Latin America rather than the Pacific Rim. Johnson and Johnson is a good example. Their are also many reasons to believe that they will do far better in the coming years. They are completely energy independent, they have a growing well educated middle class, their governments are following a very friendly approach to entice more manufacturing relocation to their contries, they are mostly Catholic and have few Muslims and therefore will have little involvement in the coming Christian/Muslim wars. In my opinion, these and many other reasons should encourage American investors to look South rather than West.

No Ceiling to This Market

Few people believe these figures anymore. With the landslide of lies that have come from this administration since 2000, one is reminded of the story of the "Little boy who cried wolf afgain and again". As Lincoln and P.T. Barnum where reported to have said, "You can fool all of the people some of the time, and some of the people all of the time, but you can never fool all of the people all of the time". Few believe anymore the rubbish that comes from this administration. That said, let's hope that Bushy Junior doesn't end up being the Hoover of this century. While they have, through their insane policies, put the house of cards are in place, let's hope that the real Americans can keep this leaking ship afloat until this bunch of morons are gone!

Global vs. Domestic Investment Flows: Surprising Imbalance

In my opinion, it is the "Kiss Theory" at work here. Since the markets bottomed in 2002, you didn't have to be a rocket scientist, if you were paying attention, to recognize that many markets around the world were growing at a greater rate than the U.S. markets. We can thank Reagan and the two Bush;'s for this result as they brought us GATT/NAFTA. Once the American industrialists realized that they could move their manufacturing to Latin America and the Far East, it was a stampede. Think that isn't true? Since the 2002 bottom when GATT/NAFTA really took hold, the best American index is only up about 90%. The Latin American index is up about 450%! Not exactly brain surgery is it!? So where would you put your savings? That is if you are one of the lucky ones who's job hasn't been outsources to Latin America or the Far East! Gee, does anybody think the above might effect the 2008 elections?
Mike S