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.
While the holiday-shortened week started off with a triple-digit bang, Tuesday stripped gains with a poor GDP read.
Sure, the Commerce Department said the economy grew at a 2.8% clip rather than the expected 3.5% last month — hopefully ending one of the most painful recessions we’ve seen in years.
Also, consumer confidence ran to 49.5 in November, up from a revised 48.7 in October (And, while better than expected, indications are that consumers are still gloomy heading into the holiday season).
But there were bull markets… and plenty of them.
Oilman billionaire Harold Hamm announced this week that North Dakota oil reserves could hold double the federal government’s estimates, noting that U.S. Geological Survey’s estimates of 4.2 billion barrels could be "100 percent off." And considering growing world oil use is expected to outpace supplies in 2010, the road to riches just got brighter for our Bakken oil trades.
According to a Reuters poll: "oil demand is predicted to rise by 1.3 million barrels per day next year to 85.9 million," as the rise in "production from outside the Organization of the Petroleum Exporting Countries and output of natural gas liquids (NGLs) from OPEC members is seen growing by just 800,000 bpd in total."
Gold soared to a record all-time high of $1,174 an ounce, as the dollar continued to fall. The dollar is likely to continue its drop, as confidence in the greenback remains scarce. Even the forecasters in Bloomberg’s survey of 46 companies think the dollar will continue to fall next year. "The sluggish economic recovery and exploding government debt burden will weigh on the currency," they said. "The dollar will remain weak until the Fed’s rates rise above competitors."
There was plenty of action in the options pit this week, too… Bank of America (BAC) saw thousands of call options trade hands on Tuesday. But a lot of this activity may be hope-based regarding TARP payback news, an end to the CEO search, and/or Ken Lewis’ offer to stay beyond his December 31 retirement date.
The Citigroup March 2010 8 call (CCH) and 5 call (CCP) also picked up some attention on hopes for a 2010 comeback, too. But don’t rush in just yet. As we said last week, financials may face pressure from the FAS 167.
Speaking of options, be on the look out for Options Trading Coach – expected to launch within weeks. Whether you’re a beginner needing basic options information; an experienced trader wanting to perfect or learn new strategies; or somewhere in the middle — we can help. Our goal is to provide you with a clear understanding of how using options can lead to explosive wealth with minimal risk in any market.
Stay Ahead of the Curve,
Ian L. Cooper
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.
Investing in Energy Efficiency Companies: Why Jim Rogers — CEO of Duke Energy — Is a Socialist
Wealth Daily Editor Nick Hodge explains CEO Jim Rogers’ view of the smart grid and gives an overview of investing in energy efficiency companies.
North Dakota Oil Formation: Why the Area Could Hold Double Government Estimates
Oil billionaire Harld Hamm thinks North Dakota oil reserves could hold double the federal government’s estimates, noting that the U.S. Geological Survey’s estimate of 4.2 billion barrels of oil could be "100 percent off." Wealth Daily tells you how to profit from this news.
The Paris Oil Shale Basin: Hype, or Substance?
Energy and Capital Editor Keith Kohl delves into an emerging European shale play looking to mirror the Bakken’s success.
Rare Earth Metals: 25% of the World’s Rare Earth Metals to be Taken over by One Company
Wealth Daily covers history unfolding as Greenland’s $273 billion Rare Earth resource that will become private property… and possibly catapult a 50-cent stock. Fortunes are about to be made. And this is one report you can’t afford to pass up.
Investing in First Edition Books: This Book’s Price Could Fly… If HBO Picks It Up
Wealth Daily Analyst Adam Sharp explains why if HBO picks up this series, the price of first-edition books could spike.