Stocks Go Boom! – A Buying Opportunity!

What a nasty stock market swoon! It’s been painful to watch hard-won share price gains drift downward.

It compounds the pain when I watch the downward share price drift, while I KNOW that great things are happening with the companies I have recommended in my investment service, Energy & Scarcity Investor. Heck, just in the past six weeks, I have traveled to Alaska, Manitoba and Quebec with my eyes wide open, looking for what needs to go on to build great companies.

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Beryllium…Still Sexy

The market for Rare Earths is completely out of whack. It’s due to distortions from the Chinese monopoly. The West has spent the past 20 years sitting on its collective butt not understanding the seriousness of this strategic resource-based issue. The chickens have come home to roost.

A few weeks back, I alerted the subscribers of my investment letter, Energy & Scarcity Investor, that the Chinese would be ramping up their stockpiling of Rare Earth products. The very next day, news hit the wires that Rare Earth prices are skyrocketing. Dysprosium oxide prices, for example, doubled in the first two weeks of June. Price and availability are going nuts.

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What if Past is Prologue?

My investment letter, Outstanding Investments, looks for opportunities in resource plays. Hence, our portfolio is chock-full of oil and gas companies, uranium diggers, gold and silver miners and technology companies that enable basic resource production.

This resource focus has been working very well for the past decade – and it’s not just me saying it. The authoritative Hulbert Financial Digest recently ranked Outstanding Investments as No. 1 in overall return from 2000-2010 among 98 investment newsletters.

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Another Chinese Resource Grab

The stakes just got higher in the 3-D chess game China's playing for natural resources. On one dimension, the Middle Kingdom is on the offensive. But on another, it's playing strictly defense…

Beijing is ordering state-owned businesses to explore a bid for PotashCorp (POT), the Canadian fertilizer giant that's already fending off a hostile bid from BHP Billiton, the Anglo-Australian mining giant.

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