Investing Daily

Gold performs the best during times of currency debasement. This is a real concern today, as governments around the world continue to spend a lot of money and print more in an effort to avoid deflation.

Master limited partnerships (MLP) can offer significant tax advantages to investors.

An ETF is great way to buy commodities such as gold, silver, palladium and platinum. And new funds make it easy to access growth stories in Canada and Australia.

One of Livermore’s most costly trading mistakes involved a man named Percy Thomas, who was known as the “Cotton King” to his contemporaries. Thomas had a reputation as a well-informed and successful speculator in the cotton markets and attracted a considerable following in both the US and Europe.

A perfect storm is building in the Midwest that will mean far more to investors than the wording of any press release on carbon emissions that originates from Copenhagen.

It’s wise to study the lessons Jesse Livermore left us--lessons that he used to make his fortunes, lessons that, had he followed them to the end, would have made “Jesse Livermore” a household name at the time of his death.

India’s central bank bought 200 tons of the gold from the International Monetary Fund; the US unemployment rate has broken 10 percent for the first time since 1983; and the Federal Open Market Committee is continuing to hold interest rates at or near zero. All of these factors add up to higher gold prices.

During years when the February cattle futures contract is trading at a discount to the April contract in the early fall, the February contract gains on the April as we move from the end of one year into the beginning of the next.

The Canadian dollar's recent performance is an indication of two critical economic developments. Its rise coincides with increases in investor confidence and risk appetite. Also, however, and somewhat paradoxically, it's being used as a hedge against inflation in the US--in other words, a type of safe haven.

As long as economic and financial risks prevail, gold prices will be well supported.

Expect a near-term pullback in resource stocks. I examine key developments in the iron ore industry and what the implications are for our portfolio holdings.

Energy is Canada’s chief cash crop. But it’s far from the only natural resource the country has in abundance. At last count, Canada produced more than 60 different metals and minerals and operated more than 180 producing facilities, from peat bogs to quarries and steel mills.

The water sector offers powerful, assured growth, the world’s safest yields and hype-free values.

I see a price squeeze setting up in the July soybean contract as it heads toward expiration. A price squeeze occurs when the shorts (who are obligated to deliver a commodity) can’t find the product to deliver and instead must “pay up” to get out of their short position. This is what happened last September.

The weather is an important factor for investors to consider; expectations and forecasts, even when they ultimately prove incorrect, have a meaningful impact on some key market sectors. In this regard, one of the factors I watch most closely is El Niño Southern Oscillation, more commonly known by the acronym “ENSO.”

Because of low prices, farmers in the cotton belt, which includes states such as Louisiana and Mississippi, planted the lowest cotton acres in 25 years. Lower acres equal lower supplies; add in a small carryover of supply from last year’s poor crop and supplies at the tail end of this crop are projected to be the smallest in seven years.

Though a full recovery is still a ways away, the US economy is showing signs of life at the dollar's expense. That's good news for commodities.

A dramatic weather event last week in the Southern Plains could significantly influence future wheat prices. An untimely hard freeze no doubt caused crop damage and killed a portion of the immature wheat crop.

The question going forward: Is the worst behind us in terms of economic growth, energy and metals prices? If the answer’s yes, then the worst is also behind Canadian dollar values, which should start to appreciate, not only against the US Dollar, but also versus the European currencies.

Charts have predictive value for this reason: Large and informed buying and selling can’t be hidden; they show up in market movements. In this issue I’ll share with you some predictive chart techniques and present some interesting charts of certain commodities that represent potential trading opportunities.