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The Great Commodities Bull Run of 2010

Wealth Daily's Weekend Edition

Written by Ian Cooper
Posted January 3, 2010 at 7:54PM

Welcome to the Wealth Daily Weekend Edition — our insights from the week in investing and links to our most-read Wealth Daily and sister publication articles.

2009 will go down as the year of change, hope, and incredible volatility... as will the first half of 2010.

We went from the brink of depression — with unemployment nearing double digits — to watching the Dow rise from 6,500 above 10,000 just a few months later, on the heels of Fed action.

Gold rallied above $1,100... We swore in the first African-American president. We watched the Bernie Madoff scandal unfold. We watched the Fed pump billions into the pipelines, keeping major banks afloat. We watched the FDIC disaster unfold... global upheaval and defaults... the Miracle on the Hudson... the fight over health care reform... and so much more.

But what will 2010 hold for investors?

We'll probably see more hope-fueled rallies in the first half of the year, met with second half downside as an ammo-less Fed and government trying to ward off the coming Option ARM resets, housing glut, higher unemployment, and issues of unsustainable debt.

But don't fear those downside risks. Just keep looking for the bulls.

  • One of those bull markets can be found in gold. And we're not the only ones that think so. Marc Faber "is buying lots of gold exploration stocks and gold producers because their prices were ridiculously cheap... [he] says gold stocks are the best bet against global meltdown," according to CommodityOnline.

And according to Jim Rogers, "gold will power the great commodities bull run that will last for the next decade. With many people worried about the deficit and paper money, gold will be a great investment and relatively few people are invested in it."
  • Elsewhere, we're beginning to see signs of explosive action in our featured Pure Asset Trader rare earth trade. Having bought at 59 cents, we're now sitting with 60%+ gains as it attempts to break $1. But this won't be a penny stock for much longer. By January 1, 2010, the company could own 25% of the world's rare earth supply, as Denmark relinquishes its sovereign hold over Greenland's mineral rights.

It's why, according to Wealth Daily publisher Brian Hicks, the "world's leading manufacturers of hybrid cars, wind turbines, batteries, and yes — even the guidance systems to our most sophisticated air and ground defense missiles systems — are watching the events in Greenland unfold with baited breath.
  • Also, keep an eye on Freddie Mac (FRE) and Fannie Mae (FNM)... Both got quite a nice gift on Christmas Eve (conveniently done so the public wouldn't notice?) in the form of a blank check. That means they now have unlimited government funding guaranteed by you and I, the taxpayers. The Treasury did this to "accommodate any cumulative reduction in net worth over the next three years." It's not as if the government can allow these two to fail... but don't buy just yet. We'll keep an eye on what the CEO incentives will include, and/or if they'll buy any of their own stock.

  • And finally, watch scanner stocks. The cowards that tried to blow a hole in a plane got the ball rolling on body scanner-related companies. OSI Systems (OSIS) and L-3 (LLL) are climbing after reports surfaced that the Netherlands will begin using body scanners on all flights from Holland to the U.S. in the next three weeks. The Dutch are asking the EU to force all EU airports to have scanners. U.S. officials are calling for increased use of scanners to detect bomb-making components on people's bodies, according to reports. And the U.S. Transportation Security Administration intends to buy 300 more scanners next year.

That's where some of the action can be found in 2010. Stay tuned for more.

Best wishes for happy holidays and a wealthier New Year,

Ian L. Cooper
Wealth Daily

P.S. In case you missed any of the week's top-read articles from Wealth Daily and our sister publications, I've included them for you here:

Energy Trading Tips: Where to Invest in 2010
Wealth Daily takes a look back at 2009 energy headlines and reveals what's in store for smart investors in 2010.

Warren Buffett: The Investor of the Year: The Natural Swings for the Fences in 2009
Wealth Daily Editor Steve Christ names Warren Buffett as his "Investor of the Year" and lists reasons Buffett deserves to be recognized.

We Were Incredibly Wrong: This is Painful to Admit...
After months of research, interviews, site visits, number crunching, and answering to critics, Wealth Daily analysts have come to terms with one thing about the Bakken oil formation... that we totally missed the mark.

The Top Sixteen Stories of the Year: So Long, Farewell, Auf Weidersehen, Good-Bye
Editor Steve Christ's parting shot to one of the most difficult years I have ever seen for the markets. In fact, it makes my head ache just thinking about it...

Green Chip Stocks: Green Chip Stocks Year-In-Review 2009
Green Chip's Jeff Siegel provides a Green Chip Stocks Year-In-Review for 2009.

Regenerative Medicine: These Medical Changes that are Quickly Approaching
Wealth Daily's Steve Christ explores regenerative medicine and explains why this radical field is likely the next "big thing" for the medical world and investors alike.

Bakken Formation vs. the Green River Formation: Don't Confuse these Two Oil Shale Plays
Energy and Capital Editor Keith Kohl sets the record straight with these two oil shale plays: the Bakken Formation and the Green River Formation.

Kick off 2010 with Profits: We're Giving Away $2.4 million to Help
Start the New Year off right with the group that called the first oil price surge as far back as 2004, when other "experts" swore that it would drop back to $20. Wealth Daily's latest report.

Villain of the Year: A Well-Deserved Award
Weeks after Time named 'Helicopter' Ben Bernanke "Person of the Year," the National Inflation Association named him "Villain of the Year" for 2009.


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