China/India & Commodities
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The rise of China Inc. and it's autos, factories, new apartment flats with aircon and heating are driving an appetite for oil and gas. In fact, a Russian pipeline is now delivering some supply. The appetite is expected to grow to equal the US in 25 years. I would bet it's faster!
Now you don't hear about Japan's thirst for oil in its recovery. You ever see an oil well in Japan? India is never mentioned but they need oil and gas to power all those PCs and servers in their knowledge service boom.
Power generation is just one example of commodities in demand as the world's big economies take hold of growth and development. If you're an investor, this is a good area to focus upon.The Australian dollar and Canadian dollar have appreciated greatly in the last year. Why? They have commodities, iron, coal, platinum, gold are the metals. They also like Brazil and Indonesia have timber for housing, wheat and grains for food and exotic veggies for the restaurant plate, kiwi fruit, soybeans, etc.
These giants who are on a growth sport, have not replaced the US, Western Europe or Japan. They complement these markets as producers and consumers. The rising middle class of China is fueling the economy in Hong Kong of hotels, retailers and restaurants. India is doing the same.
When watching, listening or reading about the rise of half the world's population think about supply/demand. Those who want commodities all compete with those who have commodities, the economic basics.
When the US says it consumes 10 million barrels of oil a day and you think of China and maybe India equaling that demand, you'll get the message. The world doesn't produce that much, so prices will go up. Costs of exploration up and demand up. Yes, alternatives are researched but we still eat, want a nice roof over our heads and all the gadgets to amuse ourselves.
Commodities, bet on them!
Disclaimer: This is NOT a buy or sell recommendation on any stock or company.
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