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May 20, 2014
Posted by Dick Sterling

Water scarcity is becoming one of the major investment themes of the twenty-first century. The smart money has already positioned itself to ride the trend --- just like they did more than a hundred years ago when the oil industry was first getting started. Rockefeller made his fortune that way, and so did forward-thinking investors who followed his lead. Today, the world's financial elite is set to dominate the "blue gold" sector, but there's still time for average investors like you to join them in a wave of profits that..."[read more]
May 17, 2014
Posted by Dick Sterling

With the gold price well below its five-year high, I am a strong advocate of select mining company stocks. Particularly those which produce precious metals such as gold and silver  --- although I’m keen on base metals producers too. Now is a good time to begin accumulating them because many of are trading at historically low prices. But before you take the plunge, here's something I've learned:

You should favor domestic producers over foreign. By that I mean the deposit(s)...[read more]
May 12, 2014
Posted by Dick Sterling

Do you have an asset allocation model? I’m going to say that every investor has an asset allocation model whether he knows it or not.

Perhaps you can verbalize your model, but many investors can’t. They follow an “intuitive” model let’s say --- one that’s event or emotion-driven, and prone to change. Their formula for investing is highly variable, and they find themselves tossed about on waves of fear. Not having a solid or consistent basis for asset allocation, it becomes...[read more]
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May 8, 2014
Posted by Dick Sterling

Any investment strategy which generates consistent gains is worth considering. And since we're currently in the month of May, let's talk about one of the most well-known market anomalies of all, which is the purported underperformance of the stock market between May and October. This has resulted in a "Sell In May" phenomenon, where investors liquidate their stocks in May and re-invest in November, after the seasonal anomaly has ended. Investors who do this successfully are exploiting a known market anomaly.

There is evidence to support this strategy. Most often the...[read more]
April 14, 2014
Posted by Dick Sterling

If you've invested in defense stocks then you've done well during the past year --- as a theme, these stocks have creamed the S&P500 by a substantial margin. Strong international sales as well as a rebound in the commercial aerospace sector mitigated the downward trend in defense spending, resulting in healthy financial statements for the largest contractors and correspondingly strong share prices. Most of the big gains have already been made however, and during the past two months defense stocks haven't performed much differently than the broad market. So is...[read more]
April 10, 2014
Posted by Dick Sterling

While shale oil has been getting Wall Street's attention, Alberta's oil sands and bitumen carbonates have been largely ignored, providing a spectacular opportunity for long-term thinkers who are willing to take a contrarian position, sit back and wait. There are several reasons (all of which are transitory) why bitumen has temporarily fallen out of favor relative to the shale oil plays:

First, shale oil is more exciting than bitumen because it's a domestic phenomenon (as opposed to an Alberta phenomenon)...[read more]
April 9, 2014
Posted by Dick Sterling

Water is the oil of the 21st century. Wars will be fought over it, nations will clash over it, and businesses will profit from it. The Establishment recognizes this and has been positioning itself accordingly. The bureaucrats and politicians in DC are being directed to tighten the screws on who controls America's water. Investors who understand this can position themselves in select water stocks to make windfall gains. Let me explain.

The "Clean Water Act" gives the feds control over...[read more]
April 8, 2014
Posted by Dick Sterling

One of the most interesting and profitable investment sectors is agriculture, at least to me. Strangely, it remains relatively unpopular amongst retail investors, who tend to favor more glamorous investments and whatever else is being talked about in the news. Agriculture is just too boring for some.

Still, at the risk of sounding like a broken-record, I keep saying that higher food prices will mean big profits for investors who position in agriculture stocks early. I’ve been saying this for...[read more]
April 7, 2014
Posted by Dick Sterling

Investors know that water scarcity has become a real problem, not just in the Southwest USA but also in the developing economies of China, India, and most of Africa. This has led to predictions that water will become "the oil of the 21st century," with some believing that we've entered the era of Peak Water --- that the planet's fresh water reservoirs are being depleted more rapidly than they're being recharged.

Famed investor Jim Rogers is quoted as saying "There...[read more]
March 22, 2014
Posted by Dick Sterling

I'm bullish on the Carbonate Triangle --- an enormous carbonate-hosted bitumen discovery in Alberta, which has only recently entered the commercialization phase. It's the second largest unconventional oil discovery in the world, right behind the world-famous oil sands. If you've never heard of the Carbonate Triangle, you're not alone. Very few retail investors know it's there, which is a good thing if you are looking to buy shares in the developers --- they're relatively cheap.

There are two major platforms in the...[read more]
March 13, 2014
Posted by Dick Sterling

You won’t find any information on JG Boswell Company (BWEL) despite the fact you can buy shares in the company. That’s because there are less than 300 shareholders, and securities regulations don’t require them to file. And even though BWEL shares can be purchased OTC, there is precious-little liquidity. Daily volume is often in the low hundreds. Such is the nature of semi-private companies --- no research, no filings, and ultra-low volume. Shares are going for a little over $900. It’s tripled in the past decade. Surprisingly, despite the lack...[read more]
February 17, 2014
Posted by Dick Sterling

Conventional wisdom says to invest in houses and land as an almost sure-fire way to make money, at least in the long term. This has been a good strategy for the past century. When the housing market crashed a few years ago, some saw it as an opportunity and "bought panic" and have since done quite well. As a speculation it was a good call. But as a long term investment I'm less favorable to real estate, at least the residential and commercial markets. Why? Mostly demographic reasons.

The question real...[read more]
February 13, 2014
Posted by Dick Sterling

There are plenty of ways for investors to profit from increased global water demand, but first let me explain my perspective: water issues are driven primarily by agriculture, which in turn is driven by economic growth.

China, India, and the developing world are gaining wealth, and the first thing to respond is agriculture. More food is required when peoples' incomes grow. Farms require water, and plenty of it. Since my position on global agriculture is bullish, it follows that I'm...[read more]
February 10, 2014
Posted by Dick Sterling

Have you ever heard the phrase "markets are rational" and thought it was nonsense? I have, but regardless of whether you believe in efficient market theory I guarantee you one thing: Human beings are frequently not rational --- and the impact on their portfolios can be disastrous.

Study after study has shown repeated patterns of irrationality and inconsistency in the way investors manage their assets. Investors tend to buy high and sell low. They are strongly influenced by herd thinking,...[read more]
February 7, 2014
Posted by Dick Sterling

Whether you see Carl Icahn as an extreme value investor or just a phenomenally shrewd corporate raider, he's a master of contrarian thinking and has consistently defied conventional "wisdom" --- making billions in the process.

With more than $20 billion in total net worth he's one of the world's wealthiest men, and will likely go down in history as one of the century's top titans of Wall Street. But is he really ruthless --- or is he simply misunderstood? Is he...[read more]
February 6, 2014
Posted by Dick Sterling

Even if you're not a rookie investor, you've probably made several of these "top mistakes" when working your portfolio. Take a look at the following list and see if you don't agree. And remember --- all investors have some kind of strategy for asset allocation, regardless of whether they can verbalize it --- and it is often undisciplined and chaotic. Their biggest mistakes generally come down to these 4 things...

Mistake #1: they have irrational expectations. They're hoping for the "big...[read more]
February 3, 2014
Posted by Dick Sterling

Small stocks. Whether they be micro-cap or a little larger, anything with a market capitalization of less than a couple hundred million dollars is what we’re discussing here. There was a time when companies this size were simply referred to as "small-caps" but in today's valuation jargon anything less than a billion dollars in market capitalization is very small. It wasn't the case twenty years ago but that's another story.

There are hundreds of these "tiny" stocks in the US,...[read more]
January 31, 2014
Posted by Dick Sterling

Always bold in his views, Jim Rogers may go down in history as one of the greatest contrarians of the past century. His stunning call on commodities and gold in the late nineties is now the stuff of legends. He's still bullish on both, and has put his money where...[read more]
January 16, 2014
Posted by Dick Sterling

The International Business Times published what they call "The top 10 greatest trades of all time" --- made by some of the most astute professionals in the history of Wall Street. Did these traders know anything? Were they exceptionally talented, disciplined, or insightful?

Either way, they made a boatload of money....[read more]
January 15, 2014
Posted by Dick Sterling

They're doing it in Singapore. The Koreans are doing it too. And now it's spreading to Hungary, Czechoslovakia and Russia. I'm talking about the latest craze in state-funded social engineering experiments: civil governments trying to convince women to have more babies, for the good of society.

It turns out the fertility rate in every major country on the planet has dropped like a stone over the past few decades --- and government officials know the economic impact could be severe,..."[read more]
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