Tuesday, November 12, 2013

Inflation down in the U.K except for Real Estate in London town.

Inflation down in the U.K except for Real Estate in London town.Low interest rates lead people not to put money in a bank,hence,inflated asset prices,add borrow are cheap so Real Estate looks promising for investors.Curiously other cities(like Manchester,Birmingham) in U.K have neglected but lately because London prices are so high opportunity has risen in Edinburgh,interesting since Scotland just might leave the U.K.
Goldman Sachs has recommended buying share in Peabody Energy and Dynamic Steel.I own both stocks and this why like them,Peabody Energy,the world's largest private own(not owned by government but it's public was the stock,ownership can brought on the market,that is the stock market)coal company.Now coal is not fashion because natural gas is cheap and Obama administration has declared war on coal.So why do think Peabody is underpriced stock? Number one,it's selling just about Book Value,two it owns coal mines in Australia,which makes it easier to sell to China's growing demand for coal.Three the price of natural gas will rebound someday and Obama isn't going to be power forever,but mean these factors will cause some coal companies to go out business,hence, leaving Peabody Energy in dominant position in the industry when things return to normal.
Dynamic Steel is great American story that Americans don't believe in anyway.It's steel company,believe or not,started in the 1990's by Mitt Romney and other and today is most profitable steel company in the U.S.A,it own several steel mills mostly in Indiana,the so called rust belt were heavy was suppose finish.Oh my fellow Americans if only believe in magic of America again we could do anything.

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