Industrial Materials Shine As Global Economy Seen Turning

NEW YORK (MarketWatch) -- With industrial materials among the first to benefit as the global economy turns, the sector ranks as the No. 2 performer among the S&P 500's 10 industry groups so far this year -- and Citigroup analysts now see nearly a 60% earnings-per-share rebound as likely for the sector in 2010.

Bankers' Clients Want More Love, More MoneyBonds of trust between investment banks and their clients have in some cases been stretched close to breaking point, fresh research by Dow Jones Investment Banker reveals, posing a challenge to bankers at credit-crunched institutions hoping to win future business. "Less Love, Less Money: C-Suite Insight For Investment Bankers" also shows JP Morgan is considered a top provider of debt and equity capital markets service and a leader in deal-making by those polled.
"The commodity-related sectors offer the 'no-brainer' forecast for rebounding profits," said Citigroup analysts Steven Wieting and Shawn Snyder.

"Simply maintaining the current level of a basket of commodity prices or crude oil would vault materials and energy sector profits sharply higher in the coming year," they wrote in a Monday note.

Contrarian Alert

By Ian Mathias

11/09/09 Baltimore, Maryland – When two of the world’s biggest newspapers write big Sunday pieces on one of your favorite investments, is it time to cash out?

Heh, if you answered yes, sell some gold today.

Both the New York Times and the Los Angeles Times are making our contrarian bone ache with weekend edition titles like “Inside the Global Frenzy for Gold” and “Why Gold Is Shining Brighter.” They’ve helped push the spot price to $1,110 an ounce early this morning, yet another record high. Addison Wiggin and Bill Bonner have repeatedly said that the “trade of the decade” is still on, but the media is making it hard on us today. Geesh… Matt Drudge’s big, bold headline this morning — even bigger and bolder than the healthcare reform news — “Gold Hits Record High as Dollar Wanes.”

Let the record show that both Chris Mayer and Dan Amoss told their readers to sell some of their gold stocks Friday, but neither left the market entirely. Chris’ Capital & Crisis readers took 112% profits by selling half their stake in one of his favorite gold miners. Meanwhile, Dan’s Strategic Short Report readers bagged a quick 68% trading options on a gold miner ETF that were set to expire in January.

“At the risk of stating the obvious,” Dan wrote to his subscribers, “we don’t want to lose sight of the fact that gold stocks are ’stocks.’ Aside from the movement in gold bullion prices, gold stocks are sensitive to the overall level of the stock market. My lack of confidence in the broad market holding up tells me that now is a good time to take profits on our Jan. $40 GDX calls.”

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