This month the price of uranium reached US$27.30 a pound. Historically speaking, uranium prices have proved fickle, from its peak to trough range of US$143 May 2007 to US$7.10 in December 2000 respectively.The spot price of uranium remained relatively volatile throughout this year.
Again, US-China trade tensions are all over the headlines. Now as you’re probably aware, tariffs are no good for anyone.
Central banks around the world used stimulus packages to boost their economies and in Australia, it also kept us out of a recession. For this to work, countries had to spend money, which has led to debt.
There are only so many hours in the day. Jack Ma, founder of Alibaba Group Holding Ltd [NYSE:BABA], found that out the hard way. If we look at places like China and India on an economic scale, both of these countries will learn the same lesson. What does this mean?
You may remember a few years ago the Chinese lost their trust in locally produced products after mass death and illness was caused by contaminated baby formula. But it’s not only baby formula that the Chinese have been lied to about.
Let me first say that I am neither pro nor anti Trump. I am simply trying to get to the crux of the issue, and work out what the potential impact on the markets might be. Because it could be BIG.
What can you do when time is not in your favour? One option is to look for opportunities in growing regions. If you can bag a couple of these winners, they’ll do wonders with just a few thousand dollars.
While Australia certainly isn’t an emerging market, we do share some characteristics. That is, we have high debt levels and rely on foreign capital to sustain our standard of living.
The A2 Milk Company Ltd [ASX:A2M] enjoyed a 3.89% increase in their share price today, sitting at $10.14 at time of writing. The development came soon after the announcement in that the company will extend its arrangements with China State Farm Holding Shanghai Co to supply China with infant formula.
With trade tensions escalating, future uncertainty has become too much for some. Yesterday I wrote about fund managers like Magellan increasing their cash positions. Magellan has not had this level of cash (18%) since 2009.