How is Oil?
The International Monetary Fund has just released its latest economic outlook with important clues as to where you should invest now to get higher returns next year. The good news is that the IMF expects U.S. economic growth to turn positive in 2011—albeit at the low rate of just 1.5%. The bad news is that rising unemployment, subdued growth among our trading partners, and a cutting back on government spending will likely keep growth at a low level for some time. On top of that, the IMF also expects oil prices to average over $76 a barrel next year—a level that will likely trigger a bearish signal in my Long-Term Master Key. Either way, high oil prices will certainly inhibit growth and stock market returns in this country. But even if the investment profits remain limited in the U.S. you still have plenty of exciting opportunities to make money elsewhere in the world. Some nations will grow many times faster than the U.S. China is the obvious candidate, with an expected growth rate of 9% (6X that of the U.S.), but there are other nations growing many times faster than the U.S. Investment returns almost always reflect growth potential of a company— or a country. So I really don’t think you should miss out on the bulk of the world's growth next year. Not when it is easier and safer to invest overseas than ever before. At the same time, I want you to have the best information on foreign markets, and on investment vehicles that offer you excellent returns without taking on too much risk. While employment figures from September show jobless rate at 9.8% in the U.S.—and rising—China expects to add 11 million to payrolls this year. Although the disparity between these two economies may not be great news for most Americans, it points the way to an unprecedented investment opportunity. You see, every increase in jobs in China has a huge impact on the worldwide demand for commodities. Adding $50 a week to the income of a poor Chinese family allows them to vastly increase their purchasing of goods and energy. Certainly, it has a far greater impact than adding $50 to an American family's income. No wonder people like BHP Billiton's Chairman, Don Argus, are predicting unprecedented growth in the worldwide demand for minerals—driven by China and India. (Billiton, you should know, is one of the world's top diversified mining companies, so Argus certainly knows what he's talking about.) Commodity prices have already risen strongly this year. But it's clear that rising demand will continue to push them higher – especially the prices of certain rare minerals essential to key technologies and industries. However, it won't just be companies like Billiton that benefit. As with other commodity booms, the biggest gains will be enjoyed by smaller companies that are rapidly expanding their production. Invest in the right commodity stocks today and you could see some truly spectacular gains.