"Red Alert" Tells You How To Invest Like China
Stephen Leeb’s view is that China’s prosperity that requires gobbling up all these relatively valuable natural resources endangers the United States future as a prosperous nation.
Nov 04, 2011
Forbes
November 1, 2011
By, Robert Lenzner
As China strives to become the globe’s Number One economic power, it has become the buyer of first resort in cement(53%), iron ore(47.7%), coal(46.9), steel(45.4%), lead(44.6%),zinc(41.3%, aluminum(40.6%) nickel(36.3%) and oil(10%)
Now, there are a number of ways you can look at this incredible phenomenon. You can accept author and investment strategist Stephen Leeb’s view that China’s prosperity that requires gobbling up all these relatively valuable natural resources endangers the United States future as a prosperous nation. He charges that China’s buying up all the copper and coal and silver is the equivalent of a Pearl Harbor or a 9/11. Leeb’s scare tactic is supposed to wake up America to get out its pocketbook and compete with China or face potential scarcity in some essential raw materials. “(Red Alert,” Business Plus, $27.99)
Over the long run Leeb may have a valid point. However, China, India and Brazil, the giant emerging markets, have needed to cool their economies down to prevent a bubble bursting, to reduce the rate of inflation, which was causing social unrest. The increase in food and fuel prices is hurting ordinary Chinese just as it is threatening ordinary consumers.
Take copper as the classic example. China was stocking all the copper it could get on world metals markets or from large producers like Freeport McMoran, FCX on the NYSE. Goldman Sachs , GS, predicted the price of copper would hit $11,000 a ton by this year-end. But, it began toppling over in the summer and is back down to the $7,000 a ton level. And FCX shares– one of Leeb’s best recommendations– fell like a rock from $60 a share to $30 before rallying.
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Nov 04, 2011
Forbes
November 1, 2011
By, Robert Lenzner
As China strives to become the globe’s Number One economic power, it has become the buyer of first resort in cement(53%), iron ore(47.7%), coal(46.9), steel(45.4%), lead(44.6%),zinc(41.3%, aluminum(40.6%) nickel(36.3%) and oil(10%)
Now, there are a number of ways you can look at this incredible phenomenon. You can accept author and investment strategist Stephen Leeb’s view that China’s prosperity that requires gobbling up all these relatively valuable natural resources endangers the United States future as a prosperous nation. He charges that China’s buying up all the copper and coal and silver is the equivalent of a Pearl Harbor or a 9/11. Leeb’s scare tactic is supposed to wake up America to get out its pocketbook and compete with China or face potential scarcity in some essential raw materials. “(Red Alert,” Business Plus, $27.99)
Over the long run Leeb may have a valid point. However, China, India and Brazil, the giant emerging markets, have needed to cool their economies down to prevent a bubble bursting, to reduce the rate of inflation, which was causing social unrest. The increase in food and fuel prices is hurting ordinary Chinese just as it is threatening ordinary consumers.
Take copper as the classic example. China was stocking all the copper it could get on world metals markets or from large producers like Freeport McMoran, FCX on the NYSE. Goldman Sachs , GS, predicted the price of copper would hit $11,000 a ton by this year-end. But, it began toppling over in the summer and is back down to the $7,000 a ton level. And FCX shares– one of Leeb’s best recommendations– fell like a rock from $60 a share to $30 before rallying.
Read More