Financial Sense Newshour: Experts

Jim welcomes back Ned Schmidt CFA, Publisher of The Value View Gold & The Agri-Food Value View Reports. Ned discusses the top performing commodities in 2013: oats, cotton, eggs and butter. He notes that the global population keeps growing and everyone needs to eat. Ned also discusses his four “Best of Class” stocks in the agriculture sector. He advises not to buy them now, but wait until the seasonally weak summer period, when prices will likely be lower. Ned also discusses how he got into studying and writing about the agriculture sector. It turns out it was a play on China.

Jim is pleased to welcome back Don Coxe, Chairman at Coxe Advisors LLP. Don sees an emerging shale oil and natural gas boom in the US, which will make it a cheaper place to do business. He sees American ingenuity overcoming government interference. As to commodities, he sees a rally in the dollar impacting commodity prices short term, but he lays out the fundamental case why commodity prices will rise in the longer term. Don doesn’t see the Euro as a viable alternative to the dollar, as Europe’s problems mount. Lastly he notes that Ben Bernanke’s implicit message to investors is “get out of cash”.

Jim is pleased to welcome back Jeffrey Saut, Managing Director of Research at Raymond James Financial. Jeff believes we have started a new secular bull market, but calls the stock market advance the “most hated rally in half a century”. Jeff notes that the support for the rally comes from a number of factors including central bank stimulus, low interest rates, strength in housing and autos, and improvement in the employment picture. He also mentions that the world is currently underinvested in US equities. Jeff makes an interesting observation about Mexico, both in terms of its labor situation and railroad transportation to the US, calling it the “New China” for US markets.

Jim welcomes Jeffrey Brown, Independent Petroleum Geologist, creator of the Export Land Model, and ASPO-USA Board Member. Jeffrey explains his Export Land Model, and reviews the major trends regarding availability of oil exports on the world market. Jeffrey also looks at the growing tension between oil production and the rising internal demand of oil-producing nations as well as China, India, and other emerging economies. His overall thesis is that the US oil industry continues to make a serious mistake by providing, in his opinion, wildly unrealistic scenarios for future US and global crude oil production.