It's true. If your investment decisions are driven by your
psychology, it can be very tempting to give up on investing
in shares at moments like this.
Is your psychology driving your investment decisions ?
Do you become more and more bearish as prices fall ?
If yes, it's a strong indication your psychology is driving your
outcomes, and if that is the case, you've got a BIG problem.
If you become more and more bullish as prices rise, and more
and more bearish as prices fall - inevitably - you'll be the most
bullish of all at the top, and the most bearish at the bottom.
If you want the secret to losing money, that's it.
If you wish to succeed as an investor you need a plan.
If not, your psychology WILL sabotage you. Count on it.
My message to you is - don't be a price follower.
Instead, be a price leader. That's the way to succeed.
If you wish to lift your investing outcomes to a higher level,
... 4 simple vows will help in a major way.
1. Vow to ignore the financial press.
2. Vow to ignore gossip and tips from friends or brokers.
3. Vow to ignore short term price fluctuations.
4. Vow to ignore technical analysis.
Focus instead on value, and strong economic trends.
Focus on sustainable trends such as:
a. the S-curve growth of the internet
b. the urbanisation and industrialisation of China.
Rest assured, these are trends that can be relied upon.
Let's now get to the subject of copper.
As you know, oil prices are high. As a result, the
S-curve growth of hybrid cars is accelerating quickly.
It's reasonable to expect that within 15 years,
up to 150 million hybrid cars will be on China's roads.
In 2005 there were just 30 million cars in China.
Compare that to the US where there are 240 million.
In China, 1.3 billion people own just 30 million cars.
In the U.S. 295 million people own 240 million cars.
Can you doubt for even a second the inevitable
forthcoming tsunami in the production of hybrid cars ?
It's not just China that wants hybrid cars.
In the next 15 years the entire world will switch over.
Exactly as one day we will all have internet access,
.. so too one day hybrid cars will be the norm.
In the next 15 years many hundreds of millions of
hybrid cars will be built. It's almost written in stone.
It will be the biggest boom is the history of the car,
... and a boom is something we can profit from.
How do we profit ??? Do we buy Toyota ???
Here's the punchline ...
Hybrid cars use TWICE as much copper !!!
... i.e compared to a normal car.
Luxury hybrids require up to FOUR TIMES as much.
Hybrids save on oil, but the copper needs are huge.
I'm sure you will agree - it is a compelling argument.
Even so, that's just the tip of the iceberg.
In fact, the biggest driver of demand is something else.
Hybrid cars are a bullish catalyst for copper prices,
... but the main driver of demand is 5 times bigger !!!!!
Hybrid cars will require massive volumes of copper,
... but another sector is even hungrier for copper.
I will be saying more on that other price driver later.
Suffice to say, the demand for copper will NOT abate.
In fact, in the coming decade, demand will surge.
High oil prices are accelerating the growth of the
hybrid car industry, but at a time when copper supplies
are severely depleted, and when, rather than there being
a threat to higher prices from new supplies coming online,
I believe the risks are actually skewed towards a major
supply disruption, and much higher prices going forward.
So, how do we make money ???
I strongly recommend to the Members of Invest4Profit to
invest in copper producers.
I'm NOT suggesting for a second to invest in any old
copper producer. It's more difficult than that.
I require 2 elements to recommend a copper producer:
1. a cheap valuation, and
2. a bullish production outlook.
In terms of cheap valuations, I can see some beauties.
I'm sincere when I say, there is great buying out there,
... assuming you invest in the right companies.
Regarding a bullish production outlook, that's the key.
If copper prices fall, rising production is insurance.
In other words, even if copper prices fall, I still expect
my recommendations to outperform because of the very
bullish production outlook that each boasts.
I'm convinced I'm seeing bargains.
I'm recommending one copper producer on a P/E of 8.
In other words, you can buy this stock for just 8 times
our forecast for earnings in 2007 - which starts July 1st.
Compare that to 13 plus for a bank, or 14 for Telstra.
Quality industrials are trading at P/E's clearly above 20.
Rest assured, a P/E of 8 for this stock is VERY cheap.
In the next 2 to 3 years this company will more than
double its copper production, and in concert, in all
likelihood, copper prices will rise to US$5 per pound.
In other words, this is a HUGE opportunity for investors.
It is the type of investment that can yield a very big profit.
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