Back in 2001, resource prices were the cheapest ever in the history of capitalism and tangibles were not on the radar screen of many investors (they still are not). Fast forward to early 2008, where prices of resources are heading to the heavens, money is starting to pour into the sector and investors are beginning to take notice of the boom. So, where do we go from here? It is my observation that the current bull-market is still in its early days and fundamentals indicate that we have a long way to go.
June 20th, 2008 | Puru Saxena | 3 comments | ContinuedArchive for Puru Saxena
Puru Saxena publishes Money Matters, a monthly economic report, which highlights extraordinary investment opportunities in all major markets. In addition to the monthly report, subscribers also receive "Weekly Updates" covering the recent market action. Puru Saxena is the founder of Puru Saxena Limited, his Hong Kong based firm which manages investment portfolios for individuals and corporate clients. He is a highly showcased investment manager and a regular guest on CNN, BBC World, CNBC, Bloomberg, NDTV and various radio programs.
Central Banks are Free to Create as Much Inflation as They Want
In the current monetary system, however, the supply of money is not constant and the central banks of this world are free to create as much inflation (money-supply growth) as they want. There is a catch – the central banks can only do so as long as they can keep inflationary fears in check by constantly reminding the public of the threat of deflation.
May 21st, 2008 | Puru Saxena | 0 comments | Continued
Natural Resources Bull Still Kicking, Precious Metals to Rise Towards End of 2007
We are witnessing a generational bull-market in all types of natural resources (energy, food and metals). This boom in commodities is largely due to supply and demand imbalances plus the ongoing monetary inflation, which is adding fuel to the fire.
Today, the various central banks continue to pump money and credit into the system and combined [...]
China Will Replace the United States as the World’s Most Important Economy
A gradual transfer of wealth and power is currently underway. Thanks to globalisation and economic reforms, the great wealth divide between the industrialised nations and the “emerging” economies is contracting. Over the coming decades, I anticipate this process to accelerate. In other words, I believe the future will bring rising consumption and a higher standard [...]
May 9th, 2007 | Puru Saxena | 1 comment | Continued
Understanding Inflation is the First Step in Protecting Your Wealth
Central banks are the engines of inflation. Whether it is the Federal Reserve or the Bank of England, the sole purpose of these institutions is to inflate. At the same time, they understate the ongoing inflation problem and manage the public’s fears. Therefore, in this era of constant inflation, understanding inflation is the first step [...]
April 5th, 2007 | Puru Saxena | 0 comments | Continued
U.S. Iran Policy: It’s All About the Oil
Bearing in mind the recent developments in the Middle East, I suspect that a geo-political disaster is around the corner. I hope I am wrong but it increasingly looks as though either Israel or the United States will attack Iran over its “nuclear program”. I had first forecast this in August 2005 and believe my [...]
March 7th, 2007 | Puru Saxena | 1 comment | Continued
Emerging Market Equities and Commodities Should Win Out in 2007
Capital markets powered ahead in 2006. As expected, the big winners were the emerging stock markets led by Peru, Vietnam, Venezuela, China and Russia. The laggards, however, were the stock markets of the “developed” world – no surprises here. Over in the commodities arena, several base metals (zinc, copper and nickel), precious metals (silver, palladium [...]
February 1st, 2007 | Puru Saxena | 0 comments | Continued
Where to Put Your Money in 2007
Are the bond investors being fooled into believing that inflation isn’t a problem? Or are the equity punters wrong about the coming interest-rate cuts and a soft landing in the United States? Perhaps, the commodities camp is stupid and we are in fact witnessing a gigantic bubble in natural resources.
Amidst all these diverse views, my [...]
Investing in Commodities: Is This Bull Dead?
The past couple of quarters were traumatic for the commodities investor. After a huge advance, the natural resources’ bull came to a grinding halt before falling off the proverbial cliff. The carnage that followed yet again reminded investors not to chase “hot” assets after a big rally. So, what caused this sudden reversal… and is [...]
November 22nd, 2006 | Puru Saxena | 0 comments | Continued
Endless Credit Creation
The Fed decided to hold rates steady today, pausing for the third consecutive meeting so they can determine the direction of the U.S. economy. But will inflation behave without the Fed heads stepping in?
October 26th, 2006 | Puru Saxena | 0 comments | Continued