-- Posted Friday, 9 August 2013 | | Disqus
Key Sectors and Subsectors are poised to launch up in the next few weeks or very few months, depending on the sector.
Others will languish or crash.
However, very few of the Sectors poised to launch up soon are multi-year holds, because the Developing Trends in the Economy, Markets and Central Bank Policy (see our Forecasts) will likely not allow that.
In other words, “Buy and Hold” rarely works any more. However, they do offer Great Profit Potential in the short to medium term.
So we provide a brief and necessarily incomplete Overview of launch-ready Key Sectors and Subsectors. Of course, within each of these it is essential for i\Investors to intensively research the Sectors and prospective individual picks; and that also entails making decisions about setting target prices for exit.
Uranium
Japan is reactivating some of its nuclear reactors, China and others need to increase nuclear power generation to reduce coal-fired power generation to clean up the air.
But “Easy” Uranium Supplies are drying up. Russian sales of Fuel are Winding Down.
In short, Demand Up. Supply Down.
But the stock prices of suppliers are depressed, e.g., Cameco (CCJ) is down nearly 40% in 7 years.
Oilfield Services & Equipment
The “Fracking Boom” in the U.S. and elsewhere is increasing demand for Oilfield Services and Equipment. Some companies working in the sector have already launched. But some are still in the Doldrums (e.g., Baker Hughes [BHI] 35% off its recent decade Highs.)
But with World Population increasing at 80 Million per year, and economies still growing (albeit more slowly than in pre-Crash years) Oil and Natural Gas demand will continue to Trend Upward.
Smart Energy
Energy Production and Transmission Infrastructure is aging and/or technologically outdated.
But energy demand is still increasing albeit more slowly in some areas. Even so, energy delivery and storage needs to be made smarter for greater efficiency and to accommodate multiple energy sources. Companies at the forefront of this “Smart Grid” technology like the one Deepcaster recently recommended selling at about 20 cents per share are likely to do very well. (See Note 2)
Sector Long and Short ETFs
We have forecast two Major Moves in the Equities Markets occurring within the next six months (See our Forecasts).
Savvy Investors who position in advance of these moves can profit regardless of the direction of the moves.
Precious Metals
Both the Precious Monetary Metals Gold and Silver, and Industrial Metals (e.g., Copper and Hybrids (e.g., Platinum) are poised to Make Major Moves in the next very few Months, as we have forecast.
But the Timing, Direction and Magnitude of these moves must be forecast on a Metal by Metal Basis.
That is mainly because of the character of the Demand for these Metals. For example, Gold is in demand mainly because it is Real Money. Silver is demanded as a Real Money and demanded (with fluctuations) by Industry, as is Platinum which is a Store of Value (but not typically Money) and Industrial Metal. Copper’s demand (with fluctuations) is as an industrial Metal.
Important Note: Unlike most of the other Sectors listed here, Gold and Silver are Excellent “Buy and Hold” Assets for the Long Term.
The U.S. Treasury Bond Market
Deepcaster and Many Independent and even some Main Stream media Analysts have correctly claimed that the thirty year Bull Market in long-dated U.S. Treasuries is over and that a Major Takedown (entailing higher Rates) is ahead.
But Triggers for the Bond Takedown (launch of Rates Upward) and the Timing of the Activation of those Triggers is Crucial here.
For example, it is entirely possible, and arguably probable, that the Comex will default on its obligation to deliver Physical Gold sometime in the next very few months (See our Forecasts). Such a Default could trigger a Bond (and Equities) Market Crash and aq Surge in the Gold Price.
Another Trigger would be a Visible Spike up in Price Inflation. Real U.S. Inflation is already a Threshold Hyperinflationary 9.4% (Shadowstats.com) but this is hidden by the Bogus (Shadowstats.com) Official Numbers. (See Note 1)
And there are Triggers which would strengthen U.S. Treasuries again, temporarily, e.g., Revived Eurozone Sovereign Crisis.
So that Key regarding Treasuries is that one must watch for and, as much as possible, anticipate, the arrival of the Triggers.
Emerging Markets – Selectively
Much out of favor until very recently, certain Emerging Markets are poised to Rally in the Short to Medium Term.
Two prime candidates for a Rally are China and Russia. As one indication that Quality Chinese stocks are undervalued consider that the Morgan Stanley China A Shares Fund (CAF) is down nearly 25% since the beginning of 2012. But recent Chinese data (e.g., increases in import/export numbers) indicates China continues to grow albeit not so rapidly as in recent years.
Regarding Russia, consider that the Market Vectors Russian Fund (RSX) is down about 15% just since Mid-March. Careful Stock Selection of Chinese and Russian stocks create profitable prospects.
Careful analysis of Macrotrends, Sector Trends, ongoing and likely Central Bank Interventions, Political Dynamics and of individual stocks should result in Wealth Enhancement.
Best regards,
Deepcaster
August 9, 2013
Note 1: *Shadowstats.com calculates Key Statistics the way they were calculated in the 1980s and 1990s before Official Data Manipulation began in earnest. Consider
Bogus Official Numbers vs. Real Numbers (per Shadowstats.com)
Annual U.S. Consumer Price Inflation reported July 16, 2013
1.36% / 9.38%
U.S. Unemployment reported August 2, 2013
7.6% / 23.3%
U.S. GDP Annual Growth/Decline reported July 31, 2013
1.62% / -1.75%
U.S. M3 reported August 2, 2013 (Month of May, Y.O.Y.)
No Official Report / 4.48% (e) (i.e, total M3 Now at $15.293 Trillion!)
Note 2: We expect the next six months to be pivotal for several Key Sectors in the Markets. We expect some Sectors will hit all-time highs, and then Crash. Others should hit all-time highs and then keep rocketing upward. And we expect some just to begin to crash.
To Consider our Forecasts, read Deepcaster’s latest Alert, “Buy Reco!; 6 Month Forecasts: Equities, U.S. Dollar/Euro, U.S. T-Notes, T- Bonds, & Interest Rates, Crude Oil, Gold & Silver,” just posted in ‘Alerts Cache’ on Deepcaster.com.
And our Buy Recommendation in our latest Alert provides an Extraordinary Opportunity to Profit from a company with disruptive technology of Great use to the Energy Industry, now trading around 20 cents per share.
DEEPCASTER LLC
www.deepcaster.com
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