Update: Glencore May Be Worse Than I Thought

Since I warned you Sept. 29 about the potential threat that commodities giant Glencore plc (GLEN.L) poses to the global financial markets, a lot of voices have chimed in agreeing with me. Bank of America published a report on the true size of the potential fallout here (it’s stunning). Then Zero Hedge noted that “The Next Lehman Has Arrived” (although I still feel it’s more of an AIG setup, but the point stands).

glencore
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Something ridiculous happened, too. The stock has gone up.

But not for a good reason.

As I’ll show you, it looks like the rise in the company’s stock price was largely a matter of short covering, not investors suddenly deciding that everything is hunky-dory in the House of Glencore. Because that is clearly not the case.

In fact, it is a shining example of exactly what’s wrong with these markets. And I fear individual investors will get caught in the mess and wiped out on a stock like this or some of the others around it. That’s why I want to call out the misapprehensions and lies that are causing this recovery – and show you what’s next.

It could end up even worse than I thought…

To continue reading click here.


Make 40% in Oil Now (and 300% Next)

Last week I showed you why oil is going down and is likely to get cut almost in half from here. Again, I believe WTI crude oil – which is trading around $45 today – will bottom out somewhere in the $20s.

That’s the situation and that’s the bad news.

Now here’s the good news. There are lots of ways to make money.

When oil prices hit the $20s, it is going to produce one of the greatest investment opportunities of the decade. Even if oil prices never come close to returning to their previous levels of over $100 per barrel, they will still rise by at least 300% during a recovery.

I feel strongly that it’s still too early to get in on the long side unless you have a very – and I mean very – long-term investment horizon. I’m talking perhaps 10 years long.

But that doesn’t mean you have to wait.

Do this to make 40% starting now…

To continue reading click here.