We Are in TransitionOutside of Jim's fixation on precious metals, I'd have to agree with this assessment. The developing world (well, outside of Africa) is booming, and they'll need energy, water and the unquoted but later-mentioned foodstuffs. Also, the business of war is booming, though I'd personally stay away from high-tech war stocks and stick with guns, bullets, explosives and armor.As I wrote in "The Next Big Thing,” when one bull market comes to an end, another emerges to take its place. It is seldom in the same asset class. Throughout history the markets swing back and forth like a pendulum between paper and things as shown from this graph taken from "Riders on The Storm." A growing population in the developing world and the environmental movement are two major factors that will bring about a rise in prices in most commodities. If I had to put investment priorities into perspective and rate them in terms of highest return over the next decades, they would be as follows:
1) Precious Metals
2) Energy: oil and especially natural gas
3) Water
4) War Stocks