Why Commodities are Rallying as Currencies Decline

 
The nearby chart tells the tale. Commodities, as an asset class, have become quasi-currencies.
“Reports Barron’s: ‘This year, for the first time ever, China has been investing more overseas in assets like iron, oil and copper than it puts into US government bonds.
Natural resources should still be a good sandbox to play in to make a lot of money and protect your wealth against inflation.”
Read more: Why Commodities are Rallying as Currencies Decline http://dailyreckoning.com/why-commodities-are-rallying-as-currencies-decline/#ixzz15wqUfeIS

Anticipating Volatility and the Rise of Emerging Markets

Interesting reports about volatility and seasonality
While short-term factors like the U.S. dollar’s volatility and the Federal Reserve’s QE2 program seem to grab the most attention, I believe the doubling of the world’s population, massive infrastructure expansion like China’s subways and the “free market policies” being embraced by the government leaders in the emerging world are much more significant
Read more: Anticipating Volatility and the Rise of Emerging Markets http://dailyreckoning.com/anticipating-volatility-and-the-rise-of-emerging-markets/#ixzz15uUjWASE

Three Reasons to Consider the Chilean Peso

Investments in China and Brazil are a bit overdone at the moment. Where can an international investor seek higher rates of return? Try the Chilean peso.
1. Chile’s economy is absolutely booming. It is expected to grow by 5.1% this year and rise to 6.1% next year (extensive copper export)
2. Accelerations by a healthy employment rate
3. The phenomenal increases in employment are helping increase the country’s corporate investment and spending. But more importantly, the gains in the labor force are helping to support income growth and personal spending. Chilean domestic consumption skyrocketed in the first three months of the year — vaulting higher by over 11%.
As the Chilean economy expands, higher consumer prices are inevitable — but so are higher central bank rates
Read more: Three Reasons to Consider the Chilean Peso http://dailyreckoning.com/three-reasons-to-consider-the-chilean-peso/#ixzz15uMDv1i3

Read more: Three Reasons to Consider the Chilean Peso http://dailyreckoning.com/three-reasons-to-consider-the-chilean-peso/#ixzz15uHpuK9x

Dollar to Become World’s ‘Weakest Currency,’ JPMorgan Predicts

The dollar may fall below 75 yen next year as it becomes the world’s “weakest currency” due to the Federal Reserve’s monetary-easing program, according to JPMorgan & Chase Co.
With monetary easing in the U.S., Japan and Europe likely to bolster the global recovery and increase demand for yield, the yen is poised to weaken against other currencies beside the dollar to levels last seen in early 2007

Big Oil Bets On Natural Gas

Royal Dutch Shell said that by 2012 it expects more than half of its output will be natural gas - not oil. That is as if Starbucks said it expects to sell more tea than coffee. Yet this prediction is not unusual for Big Oil these days. In fact, most of the big boys are making big bets on natural gas. One of my favorite plays in the natural gas sector remains Contango Oil & Gas (AMEX:MCF). This is because it is a low-cost producer with no debt, so it can still create shareholder value in a low-price environment. Contango's all-in costs are under $2 for nat gas.
http://dailyreckoning.com/big-oil-bets-on-natural-gas/