Jim Letourneau's Blog

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Thoughts on Commodity World Asia 2006

Attendance was below expectations at the commodity conference I attended in Hong Kong. While this is a strong negative for conference organizers, I would interpret it as a positive for resource stock investors. The presentations were uniformly bullish on commodities for the longer term in spite of the summer correction. While it is risky business to try and pick bottoms I made a point of buying some resource stock warrants (gold, copper, silver) last week in anticipation of a return to higher prices within a year or two.

There were a few investment themes presented that tend to be underfollowed. I'll be elaborating on them in our next newsletter. Look at opportunities in the following areas:

  1. Agriculture

  2. Water

  3. Obscure Metals

I have checked out these sectors before but the conference was a reminder to give them another look. While most of the attendees were interested in futures and derivatives, there will be select related equities that will benefit as well.

The conference was a great shot in the arm. It is easy to get discouraged during corrections in a bull market. This bull still has legs and there will be more gains to come.