Buying Metals? Or Are You Just Buying China?
By Arsene Lupin:With Greenspan and the Fed pumping up the economy with rounds of quantitative easing, it is perfectly rational to worry about inflation. In fact, the way things are going, inflation isn't an 'if', but a 'when'. If you're worried about inflation, it used to be that commodities were the ticket. In theory, Iron stocks like Vale (VALE) and steel stocks such as Nucor (NUE) or US Steel (X) or Arcelor Mittal (MT) gained in demand and pricing power as inflationary pressures built up. In theory, Copper would have the extra kicker of peak copper (a time when copper demand kept ascending while supply peaked), thus leading to untold riches for owners of Freeport McMoRan (FCX). Construction and transport would lift aluminum and Alcoa (AA) to new heights as countries like Brazil tripled their Aluminum consumption in the next 10-15 years.But many of the same people who are worried aboutComplete Story »