{"id":28053,"date":"2012-03-07T20:59:53","date_gmt":"2012-03-08T01:59:53","guid":{"rendered":"http:\/\/countingpips.com\/fx\/2012\/03\/07\/why-energy-resources-are-the-only-reason-to-be-invested-in-this-market\/"},"modified":"2012-03-07T20:59:53","modified_gmt":"2012-03-08T01:59:53","slug":"why-energy-resources-are-the-only-reason-to-be-invested-in-this-market","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2012\/03\/07\/why-energy-resources-are-the-only-reason-to-be-invested-in-this-market\/","title":{"rendered":"Why Energy Resources Are The Only Reason to be Invested in This Market"},"content":{"rendered":"

By MoneyMorning.com.au<\/strong><\/p>\n

The underlying trend in the market is a general deflation in financial assets. This is what always happens at the end of a credit boom. During the boom, easy credit accelerates growth and expansion, including the use of raw materials and energy resources<\/strong>, and benefits financial firms the most. In the bust, those assets deflate as each additional unit of credit leads to less and less real growth (mostly because each new borrowed dollar is going to pay off previously borrowed dollars).<\/p>\n

<\/span>
\nThe only way to pay off accumulated debts is to grow again. That can only happen once the bad debts of the boom have been liquidated. In other words, it is no longer possible in today’s economy for economic growth to pay off the massive debts accumulated by governments and households.<\/p>\n

What we do know is that economic growth has two engines: credit and energy. If credit is diminishing in influence (because we’re in a credit depression<\/a>) energy is gaining in influence. You can’t have growth in anything \u2013 especially an economy \u2013 without more energy<\/a>. We know that when growth resumes, wherever it resumes, it will require energy resources.<\/p>\n

That means the only reason to be in a market that’s heavily manipulated by interventionists is if you can buy energy assets<\/a> when they’re cheap. This energy is quite literally the fuel of future booms. It is a non-monetary real asset that gains in value due to a variety of factors, including the depletion of conventional crude oil<\/a> and natural gas<\/a> resources<\/p>\n

If you’re going to be in the market at all right now, you might as well own companies that give you the chance to make five or 10 times your money in the next five years. Unconventional energy stocks<\/a> fit that description. In the bigger picture, you want an investment portfolio you can sleep with at night. One that gives you the chance to grow your wealth from powerful long-term trends, but doesn’t rely on “the market” going up.<\/p>\n

Dan Denning<\/strong><\/p>\n

Editor, Australian Wealth Gameplan <\/strong><\/p>\n

From the Archives\u2026<\/em><\/strong><\/p>\n

<\/strong><\/p>\n

The Stock Market Financial Winter is Coming<\/a><\/p>\n

2012-03-02 \u2013 Dan Denning<\/p>\n

Why You\u2019ll Want to Watch This \u2018Bad\u2019 Retail Stock Very Closely<\/a><\/p>\n

2012-03-01 \u2013 Kris Sayce<\/p>\n

Higher Oil Prices \u2013 Government Guaranteed<\/a><\/p>\n

2012-02-29 \u2013 Dr. Alex Cowie<\/p>\n

Asymmetric and Economic Warfare with Iran<\/a><\/p>\n

2012-02-28 \u2013 Dan Denning<\/p>\n

Why the Greek Debt Crisis Has Nothing to Do With the Euro<\/a><\/p>\n

2012-02-27 \u2013 Nick Hubble<\/p>\n

<\/strong><\/p>\n

For editorial enquiries and feedback, email letters@moneymorning.com.au<\/a><\/p>\n

\n<\/img><\/a> <\/img><\/a> <\/img><\/a>\n<\/div>\n


\nWhy Energy Resources Are The Only Reason to be Invested in This Market <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By MoneyMorning.com.au The underlying trend in the market is a general deflation in financial assets. This is what always happens at the end of a credit boom. During the boom, easy credit accelerates growth and expansion, including the use of raw materials and energy resources, and benefits financial firms the most. In the bust, those … <\/p>\n

Continue reading “Why Energy Resources Are The Only Reason to be Invested in This Market”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-28053","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/28053","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=28053"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/28053\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=28053"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=28053"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=28053"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}