Welcome to the Energy and Capital Weekend Edition — our insights from the week in investing and links to our most-read Energy and Capital and sister publication articles.
The world will hit 7 billion people by the end of this month or early next.
And while I love the incessant stream of cute kiddie pictures now clogging up the tubes of the Internet as much as the next guy, I can’t help but be reminded of a quote from The Matrix, as Agent Smith tries to explain the problems with humans to Neo.
I’d like to share a revelation that I’ve had during my time here. It came to me when I tried to classify your species and I realized that you’re not actually mammals. Every mammal on this planet instinctively develops a natural equilibrium with the surrounding environment but you humans do not. You move to an area and you multiply and multiply until every natural resource is consumed and the only way you can survive is to spread to another area. There is another organism on this planet that follows the same pattern. Do you know what it is? A virus.
I’ve seen similar sentiments expressed in YouTube videos that ask the question, “Are humans smarter than yeast?”, because yeast knows when to stop reproducing relative to the amount of resources available.
I know it’s not the most optimistic fodder. But as we cross another billion-person milestone in global population, it must be chewed.
Before you get to the rest of this week’s articles and investment ideas below, I’d like to share with you the response I offered to premium members of my Alternative Energy Speculator after telling them world population would soon hit seven billion:
All of us need energy, food, and water. And all three are getting increasingly hard to come by.
Oil supplies are so tight the IEA has announced the opening of 60 million barrels worth of strategic oil reserves to offset lost Libyan production.
Food supplies are so tight the U.N. recently warned the world of an imminent crisis. Food security and nutrition representative David Nabarro told The Associated Press last week that “shortages of food, water and power are bound to create social anxiety and political instability in the future.”
He added, “Anybody who thinks that 2008 represented some kind of peak is dreaming.”
That said, let’s get back into two ETFs we’ve used to play this trend before.
First, the ProShares Ultra Crude Oil (NYSE: UCO). It’s bouncing all over today, so be stingy and set a limit order for below $39.00.
Second, the PowerShares Agriculture Double Long (NYSE: DAG). Let’s aim for that one under $13.15.
As an individual investor, you can’t control what goes on in Washington, nor the 310 million people in its jurisdiction. And you certainly can’t control everything 7 billion people with different cultures and religions will do.
But you can profit from what a growing population inherently means for the world’s resources: increased prices.
Call it like you see it,
Ethanol Subsidies: The Great Ethanol Scam of 2011
Editor Jeff Siegel exposes the truth about ethanol subsidies.
Stealing OPEC Profits: How They’re Taking a Piece OPEC’s Trillion Dollar Profits
Energy and Capital editor Keith Kohl explains why OPEC’s trillion dollar profits are in danger.
Growing Body Parts: Welcome to 21st Century Medicine
60 Minutes has reported on the one doctor about to make multiple medical problems disappear forever. But they forgot to mention you could get rich from it.
A Solar Energy Overview: Forecasts, Trends, and Companies
In only a few years’ time, the solar market has gone from “That stuff’ll never work” to a billion-dollar acquisition target of the biggest oil companies in the world.
Forget the Feds Like They’ve Forgotten You: Everybody’s Got Problems, Profit from the Solutions
Because while the U.S. cannot really compare to the helplessness of a landlocked $12 billion GDP nation of less than three million inhabitants, our level of reliance on nations such as China and India for cheap goods, and Canada, Venezuela and the Arab Middle East for oil is putting us more and more at risk.
Spooks and the Next Big Crash: Human Behavior Governs Exactly When the Coming Downturn Happens
A little history, and a critical chart: Both show how and when the market will crash.
NFL Lockout Stocks: Get Your Piece of the NFL’s Billions
Analyst Ian Cooper entertains speculation of an NFL lockout decision within days, and offers two ways to trade it.
Biotech: The Biggest Thing Since the Internet
In search of “the next big thing”, editor Steve Christ explains why advances in biotechnology will be the biggest thing since the Internet.
The Best Way to Trade a Stock: Is Not to Trade it at All
Editor Ian Cooper explains why the best traders abandoned stocks long ago, and how you can do the same.
Mongolia Hates Good News: One More Ten-Bagger in UlaanBaatar
The upside catalysts in Mongolia remain as strong as ever. The Chinese slowdown fears coupled with the increase in company assets mean the local stock market is as cheap as it was two years ago – before Crisis & Opportunity produced a 1058% return on one stock, and a 434% percent return on another.
Tesla’s New Set of Wheels: Tesla Roadster Production to End, New Model in the Making
Guest contributor Brianna Panzica comments on Tesla Motors’ plan to stop Roadster production and the new model that is underway.
How to Buy Rare Earth Bullion: Dwindling REE Supplies from China Signal Higher Prices
With global supplies dwindling from continued reduction in Chinese exports, Wealth Daily analyst Luke Burgess explains how rare earth elements offer quite an attractive risk/reward potential for investors.
Natural Gas Stocks Vs. Coal Stocks: The Energy War with One Clear Winner
Energy and Capital editor Keith Kohl explains why the war between natural gas and coal stocks will end with only one clear winner.