Thursday January 31, 2013
Rich people think in terms of decades
Poor people think about Tuesday all day Tuesday
Gail Sheey, Pathfinders
So what is the next great investing frontier? We would all like to have bought MSFT on its IPO or Apple when Jobs came back. Picking individual stocks is a chore. For example buying Apple at $5 in 1999 was a great idea, but selling Dell a year or two later at $50 was a necessity.
This is why ETFs and segmented funds were created, so one can buy a market basket of an industry. I made this post for my students yesterday.
UPDATE Friday An alert reader note our previous link was not working, so we replaced it.
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Waterfund releases details of its arrangement with IBM to create a new global water index. This wil reflect the actual cost of producing water. Now wter is priced under its cost.
We are studying derivatives in class. Here is another creative used of a derivative. No doubt this will lead to a water futures contract as well as a water ETF. And if IBM is involved you know this is a serious matter.
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No doubt about it water is the new oil. Here in Texas the man made lakes are nearly dry. I attempted to kayak the Guadalupe River above Canyon Lake Dam at summer end, only to find it ankle deep, literally.
Here are a few symbols to add to your favorite charting software.
American States AWR
Consolidated Water CCWCO
California Water CWT
Veolia Environment VE
Aqua America WTR
Here is an article on Water ETFs.
A reader reports trouble with this link, I have it as
http://finance.yahoo.com/news/buy-best-water-etf-110021051.html
PHO
PIO
CGW
FIW
These are all at the top of their charts now and not suitable for purchase. But let's start watching the group, eh?
I am not expressing any opinion on any of these at this point, just a heads up, with the market pulling back a fistful of water purchased at a market low might be valuable.
The obvious solution to creating fresh water is a way to de-salt sea water. The problem then is, how to get the water to flow uphill, as all seawater is at sea level but that is not where everyone lives. While this may be oh so obvious it is also a clear statement of the problem.
Gold advanced $18 yesterday and has pulled back $9 this morning. No one said this was easy. Patience. TLT broke to a new low at 116.75. The US Dollar closed at 79.28 edging lower.
I see Michael Gayed is thinking Dow 13,000, which is what we suggested that last couple of weeks, a pullback in February.
Socionomics
Volgograde becomes Stalingrad, again. Paul Johnson's Modern Times is a must read for anyone seeking to understand the evolution of China, the disaster of Mao, and Russia, the disasster of Stalin. China is coming back to its greatness of year 1500, Russia remains uncompetitive as an industrial nation.
Stalingrad became Volvograd in 1961, a time of positive social mood, at least world wide. it takes a read of Johnson's book to realize what a monster Stalin really was. Indeed Stalin was Hitler's idol. Now in a time of heightened tension and economic stagnation, Russia turns inward to its past. This is true all over the world. Just today the WSJ on its editorial page notes that War has hardly ended with both the Mide East and Africa experiencing military action.
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