Global Mining Investing $69.95, 2 Volume e-Book Set. Buy here.
Author, Andrew Sheldon

Global Mining Investing is a reference eBook to teach investors how to think and act as investors with a underlying theme of managing risk. The book touches on a huge amount of content which heavily relies on knowledge that can only be obtained through experience...The text was engaging, as I knew the valuable outcome was to be a better thinker and investor.

While some books (such as Coulson’s An Insider’s Guide to the Mining Sector) focus on one particular commodity this book (Global Mining Investing) attempts (and does well) to cover all types of mining and commodities.

Global Mining Investing - see store

Click here for the Book Review Visit Mining Stocks

Download Table of Contents and Foreword

Sunday, October 24, 2010

Merger of Australia's ASX and Singapore's SGX

There is an offer on the table by the SGX - Singapore's stock exchange, to merge with the Australian Stock Exchange (ASX). It would be ridiculous to merge the ASX and SGX because it only makes sense to the SGX if it resulted in higher fees. After all the SGX is worth twice as much for half the market capitalisation. Where is the`benefit for the ASX unless it is allowed to charger higher fees? That is a tax as far as the market is concerned.
The notion that competing exchanges will offset that is a nonsense. A duopoly is worse than a regulated monopoly....because its a pretense for worse practices.
Andrew Sheldon

Wednesday, October 20, 2010

The Fed to engage in monetary easying

Markets are expecting a correction. There is every reason to expect a correction, but by no means is the US, UK, EU or Japanese governments going to allow equity markets to collapse in any dire way. Of course we have come to expect monetary debasement....its what unaccountable governments do rather than increase tax. Why? Inflation is a far more cowardly tax, and politicians are cowards; well-matched with a psychologically repressed constituency which allows them to engage in all manner of 'economic persecution'.
Here is a good article on the problems confronting the USA. I will only add that I expect Japan and the EU to debase their currencies more. It will be a pooled effort by these governments, the USA and the UK. Because I think these other governments are going to do more debasing than the US, we can expect a 'relatively' strong USD, but of course it will be the commodity countries and emerging markets which will perform best. We might also expect the property markets in emerging Asian countries to do rather well. i.e. Thailand and the Philippines. The Philippines has the most liberal laws for foreign investment as well as most relaxed visa laws. You can stay 18 months without leaving the country on a tourist visa.
Andrew Sheldon

Thursday, October 07, 2010

Nonsense about a currency war

In the media we are being told that a currency war is brewing in international markets because China is supporting its currency. We might ask - what are the ramifications of this?
In this blog however I want to focus on what is not said.
The yen is too high because over the last decade it has not engaged in the currency debasement that the USA and EU have...this has meant its currency has been resilient despite its weak local economy. It has also been supported by a current account surplus, however that benefit has declined in recent years, so that the surplus is all but gone. I would argue that this posturing against China's strong yuan is nothing more than a justification for the 'quantitative easing' which is about to follow. That has nothing to do with China, but everything to do with the poor economic management of Japan.

You might wonder why these countries keep blaming each other. The intent is to give the appearance that they are out there acting in your interests. They are not. Its all a 'serve-serving' show to make the international political debate look like a battlefield. These countries have never been more alligned in their desire to expropriate more wealth from you. Did the Chinese government object when the Australian government placed a resource rent tax on had done the same to its miners in the year previously.

You are not going to see the debasement of the USD for the most part because Europe and Japan will be debasing their currencies at the same time. The only strong currencies will be the commodity currencies. So expect an economic miracle in these countries. The reality however is that whilst people will look at commodity prices and say these countries are benefiting from high commodity prices. The reality is that commodity prices have not risen in real terms, so much as the USD in which they are denominated in as collapsed in value. We can show this by looking at the impact of commodity prices in Australian dollars - a hard currency. Hard by virtue of its monetary discipline. No one can match the capacity of the USA to debase its currency...since its debt is denominated in USDs. Of course the US will have to change its posture if debtor nations like China and the Middle East give pause to buying US bonds. It will be forced to raise rates, taxes. There is in fact no need for a new currency....just a rationalisation.

This is the era of moral relativism. A consequence of that value system is economic relativism, and that means in this context, currency relativism. i.e. If you don't see it, it does not exist. So its ok to have a debasing currency, as long as no one sees the problems associated with it. What will happen? Countries like Australia which have a hard currency will be forced to debase by either:
1. Engaging in quantitative easing
2. Increasing debt spending, i.e. Long term infrastructure projects which will make no returns in the short term.

See how it is. It is about sabotaging your economy, as by inefficiently making your economy as inefficient as possible, you can keep your currency competitive and your people happy. The reality is that only countries like China, which imports, processes and exports is immune from the effects of this economic relativism....and that will remain true as long as the country has a surplus of labour. Give it about 15-20 years before it is forced to adjust. In the meantime, Australia will be forced to debase its economy. We will have a welfare state as big as European stages in future. Don't say you were not warned. It will all be done in the name of the 'common good', so you won't see it coming. Of course they use different words these days. Even since '1984' was published the words have changes in each decade. Today its 'global competitiveness' and 'quantitative easing'....tomorrow it will be 'lifestyle preservation' and 'harmonic adjustments'. Well they are my suggestions.

So back to Japan. Does it have any alternative but to engage in 'quantitative easing'? Not unless it is prepared to raise its taxes, raise interest rates or reform the economy, or cut spending. But the government is not prepared to significantly do any of that because that would cause 'disharmony'. So its national delusion and currency debasement....which places it in tune with the global imperative. The excuse is that Japan's currency is too strong. The reality is that Japan needs to fund its debt by debasing its currency. By printing money to repay debts.
Andrew Sheldon

Tuesday, October 05, 2010

Reserve Bank trepidation signalling govt spending

Readers of our Japan Foreclosed Property blog will be aware that we have been expecting Japan to engage in an easy monetary policy for a time now, and now its coming through. The consequence is going to be good for Japanese property, but also for the commodity stocks, to which we are overly exposed. Copper, gold and tin are all at record highs, and even other metal prices fared better despite the rapid growth in their warehouse inventories over the last year. Clearly this is not simply about economic stimulus. Commodities are denominated in USDs, and since the USD is one of the three major currencies being debased - USD, Euro and Yen, you can expect more strength in the commodities, and also a corresponding strength in the commodity currency.
The Reserve Bank of Australia did not raise the Official Cash Rate at its last meeting, causing a big drop in the currency. We might expect it to do so at the next meeting. I have a more probable explanation for the lack of action. I think the Australian Labor government is going to go on a spending spree in order to keep the Australia dollar competitive. Expect it to announce a national campaign to build a mag-lev train network or some other scheme like that. I reckon Kevin Rudd will spend his time in China trying to develop a cozy partnership with the Chinese to supply the tracks, since they have been building such maglev systems lately.
The Australian currency is going to be strong, so expect such efforts as these to manage the currency so that manufacturers and farmers are not too disadvantaged.....even though its not its natural constituency. Its also about managing the volatility in an era of government financial intervention that really re-started in 1983 after a short hiatus. Like one year. Was there an Olympics that year?
Andrew Sheldon

Where to place your money during this recession

An article in the San Diego Tribune offers some investment advice in these hard times. I have some other advice for you, which you might like to consider after reading this article, which I find only modestly helpful.....mostly for its factual information.

Gold is far from over-valued based on historic measures. Based on the previous three cycles, the dow jones index vs gold price can go to 4, giving a gold price of over $US2,400/oz. Adjusted for inflation, gold is still cheap. In fact, it was only lasy year that it surpassed its old high of $780/oz – set 30 years earlier. But there has since been 30 years of inflation, compounding at 3% per annum.
Gold is not simply a hedge against inflation. It is a hedge against debasement of currencies. In a world where all major governments are debasing their currencies, we are looking at currency relativism. The only strong or 'hard' currencies are the commodity producers like Australia, Canada, NZ, Brazil and South Africa. Because of their cheap labour, resulting from structural liberalisation in the post-communist (liberalised collectivist) era, you can also consider China, India, Brazil as attractive emerging markets.
There is not going to be a collapse in China anytime soon because this is a 'super cycle'. China has plenty of cheap labour, and that will mean Western factories will continue to invest in their country. The softening of the global economy offers reason for China to stimulate domestic demand, as Western countries previously did. So these economies are attractive.
Why is Japan’s currency too strong? The US is simply debasing their currency at a faster rate than Japan. You can rest assured that Japan is going to change that very soon, as it contends with a public debt of over 200% of GDP and diminished export competitiveness. So this is more economic or simply currency relativism.

Bonds offer a poor yield in the USA, so you need to look at short term emerging market or hard (commodity) currency markets like Australia, NZ, South Africa and Canada, however even these markets are pretty volatile, so you have to trade opportunities.
Real Estate in the USA or Japan is ok, but gold stocks is by far the best opportunity.
Andrew Sheldon

Japan Foreclosed Property 2015-2016 - Buy this 5th edition report!

Over the years, this ebook has been enhanced with additional research to offer a comprehensive appraisal of the Japanese foreclosed property market, as well as offering economic and industry analysis. The author travels to Japan regularly to keep abreast of the local market conditions, and has purchased several foreclosed properties, as well as bidding on others. Japan is one of the few markets offering high-yielding property investment opportunities. Contrary to the 'rural depopulation' scepticism, the urban centres are growing, and they have always been a magnet for expatriates in Asia. Japan is a place where expats, investors (big or small) can make highly profitable real estate investments. Japan is a large market, with a plethora of cheap properties up for tender by the courts. Few other Western nations offer such cheap property so close to major infrastructure. Japan is unique in this respect, and it offers such a different life experience, which also makes it special. There is a plethora of property is depopulating rural areas, however there are fortnightly tenders offering plenty of property in Japan's cities as well. I bought a dormitory 1hr from Tokyo for just $US30,000.
You can view foreclosed properties listed for as little as $US10,000 in Japan thanks to depopulation and a culture that is geared towards working for the state. I bought foreclosed properties in Japan and now I reveal all in our expanded 350+page report. The information you need to know, strategies to apply, where to get help, and the tools to use. We even help you avoid the tsunami and nuclear risks since I was a geologist/mining finance analyst in a past life. Check out the "feedback" in our blog for stories of success by customers of our previous reports.

Download Table of Contents here.

'Buying Philippines Property – Download a free sample chapter!

The Philippines property market remains one of the strongest in Asia thanks to rising incomes, rising population and rapid rates of urbanisation. The administrative reforms of the Arroyo government have given way to improved administration under Aquino. ASEAN countries can be expected to achieve even greater price gains than Western markets, demonstrating that this super cycle is far from over.

Buying Philippines Property 2010
- Download the table of contents or buy this 2-volume eBook at our online store for just $US19.95.

Investment Strategy

If you are investing for the long term, you still need an investment strategy. Dont be fooled by the rhetoric of fund managers. The reason they advise you to 'buy & hold' is because they dont want to compete with you in sell-offs. Markets and industrial sectors are cyclical, so they demand trading to get the best returns. Fund managers actually cant hope to match the performance of small investors (if you are half good) because they have to manage huge amounts of funds and charge you a fee besides.
MY ADVICE is (i) look at a range of market indices and decide upon what level of correction would give you the justification you need to get in & out of the market. It might be a 5-10% retracement or a break of trend. (ii) Diversify if you dont have an intimate knowledge of the company or management. More than 30% in one company is aggressive.

'Buying NZ Property – Download the free sample readings!

The NZ property market is shaping up as one of the most attractive property investment markets for the next few years. High yielding property and the collapse of the NZD make NZ the perfect counter-cyclical investment if you buy right! In addition, there is no capital gains tax, transfer taxes, VAT/GST or wealth taxes in NZ, so rest assured that NZ property is tax-effective! Learn more now!

New Zealand Property Report 2010 - Download the table of contents or buy this report at our online store for just $US19.95.