2008 September « Enterprising Investor Forum

Commodity Update Thursday, September 11, 2008

Posted by ei-forum in ETFs.
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The sell-off in commodities has been quite impressive, but do we really believe that the bubble has burst or is this just a severe correction in a secular bull trend that offers an interesting entry point for investors that had not managed to invest before the spike in prices?

We would definitely encourage the Enterprising Investor to take a closer look at some of the commodity ETFs like DBA or DBC and try to formulate an opinion on what strategy to adopt and identify a possible entry point. Even Russia, RSX (over half of the market cap is commodity based), will become attractive if prices continue to fall……

Where to next? Wednesday, September 10, 2008

Posted by ei-forum in Investing.
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Saying that the markets remain interesting is an understatement – with the latest news on Lehman, we could really see another panic cycle. However, in the midst of this, commodities continue to weaken and the dollar is retaining newly found strength. Furthermore, revised guidance by FedEx, due to declining oil prices, will probably be followed by companies in other oil intensive industries. What to make of all of this?

What is clear is that this volatility highlights the struggle between Financials vs. Energy/Commodities. Since the July lows, the Financials have rallied over 22% and Energy is down over 18%, not to mention commodities down over 35%. At some point, we hope to see some more balanced buying and a lightening up of these ‘LONG OIL/SHORT FINANCIALS’ or vice-versa strategies in favor of a more structured approach to investing and therefore a gradual recovery of the markets.

Let’s see what today has in store for us!

Paulson on the bailout Tuesday, September 9, 2008

Posted by ei-forum in Miscellaneous.
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Here is a video update of the $200 billion government takeover of Freddie Mac and Fannie Mae that is intended to avoid the possibly catastrophic collapse:

Enjoy!

We’re Back! Tuesday, September 9, 2008

Posted by ei-forum in Miscellaneous.
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Markets remain very volatile, the government will takeover Fannie Mae and Freddie Mac, commodities continue to retreat, dollar is strengthening – basically, things continue to be very interesting!