Sunday, July 17, 2011

Europe crisis? America debt ceiling? Stock market alternatives?

European crisis, America’s debt ceiling, Murdoch’s global media empire under fire, unemployment numbers down. And if it’s not unemployment, we’re all supposed to be shocked that debt is coming back to bite us in the ass...but some folks act as if this stuff surprises them. For months, this market has made little sense. They rallied 600 points at the beginning of this month on the idea that unemployment figures would magically improve then goes down again or steady up without any visible reason.But what has changed? Not a damned thing.

If you want to make some real money in this market, go where the action is.

Go where supply doesn’t equal demand. Go where national powers are going nuts because China insists on behaving like a crying brat.
Because if you continue to invest in the same items that the media throws down our throats every day, you’ll lose your mind — and for some of us whatever’s left of our hair.
Want to know what’s going to happen over the next few weeks?
America will pull a rabbit out of her hat, and the debt ceiling crisis will be averted in the eleventh hour. Europe will continue to fall apart, as the press clamors over the slow death of the Euro. Housing will not improve; unemployment will not improve.
Obama's threats to hold back Social Security checks won’t hold water, and we’ll run up a few hundred more points on the Dow as Bernanke teases QE3.
And here's another likelihood for 2011...and some positive news: Rare earth prices will continue to sky rocket!

We can all agree that rare earth prices are exploding. And we can all agree that we still have no alternatives. Months after China cut its export quotas and began hoarding this group of chemical elements we so desperately need comes word that Japan has found the rare earth discovery of a lifetime — enough minerals to supply the world.
But was this news nothing more than a political ploy, intent on forcing China to ease its restrictions? No one knows for sure.
The discovery, as it turns out, isn’t even large enough to impact China’s hold.
That means prices will continue to go up — bad news for America, Japan, and anyone else with their sights set on a green future.

Elissa Resources (ELI.V) trade just expanded its land position at the mining company's Thor rare earth project.

Lynas (LYSCF.PK), owner of the Mount Weld mine in Australia, has plans to produce by the end of the year, hitting 22,000 tons by 2013.

Molycorp (MCP) has plans to start up its Mountain Pass mine in California next year, ramping up to output of 40,000 tones a year by late 2013.

And don't forget about Rare Earth Elements (REE), the Market Vectors Rare Earth Metals ETF (REMX), and the Greenland play that have been touting us for months.

Do your research, stay afloat, keep an eye on the underwater rare earth story...but keep an eye on what’s going on above earth too…Stay alert and share the positive news when you find them.

Good luck, 


Joe Velarde
Managing Director
eglobal.joe.velarde@gmail.com
E-global Solutions. 2011. 
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