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8/27/2006 11:35:00 PM|||BWV|||This idea has been tossed about recently in investment circles... though with far less fervor than the "next Microsoft" talk of yesteryear.
I'm betting that it has some merit.
As I undertstand, worldwide water usability statistics are really scary. Supposedly the pollution scene in China is horrendous. Potable water will (again, supposedly) get scarcer with global warming, drought, and other climate change.. and investment in H2O infrastructure will soar. This certainly has the makings of a good investment theme.
After discovering that an ETF already existed for the water theme, I assumed it would be mostly utilities. Wrong! As this breakdown shows, utes are only a quarter of the exposure.. nearly half is in infrastructure and purification companies.
The chart looks like it's formed a bottom, and we got long last week. We'll bid for more soon.
As for the broader market.. Well you can read 10,000 opinions on 10,000 other trading blogs, but here goes:
We had a very quiet week, drifting barely lower in meaningless late summer trade. The big cap indexes are leading now, with big growth small cap stocks generally not having recovered as well. Broadly speaking, this is far from a runaway bull market.
This chart of the Russell 2000 (via the IWM, as usual for me) shows some "precarious promise." The down trend is still intact for now.. that's negative. But instead of completely breaking down on the 3rd visit under $67, it has formed what could turn out to be a first higher low in any renewed up trend.
Low volatility eventually begets high volatility. For now: we're all wound up, with somewhere to go.
Long PHO|||115673841781755266|||Water the "next Oil" ?
As for the broader market.. Well you can read 10,000 opinions on 10,000 other trading blogs, but here goes:
We had a very quiet week, drifting barely lower in meaningless late summer trade. The big cap indexes are leading now, with big growth small cap stocks generally not having recovered as well. Broadly speaking, this is far from a runaway bull market.
This chart of the Russell 2000 (via the IWM, as usual for me) shows some "precarious promise." The down trend is still intact for now.. that's negative. But instead of completely breaking down on the 3rd visit under $67, it has formed what could turn out to be a first higher low in any renewed up trend.
Low volatility eventually begets high volatility. For now: we're all wound up, with somewhere to go.
Long PHO|||115673841781755266|||Water the "next Oil" ?