In this instalment of The Macro Investor, I'm going to lay the foundations for a long position in cocoa. A solitary undertaking, sound investment comes from developing an alternative, contrarian, view and opposing the crowd when sentiment is extreme. When everybody is pessimistic about the prospects for a market, we hit ground zero. From that point on there's relatively little that can bring about a more bearish attitude; but the slightest sniff of a change in sentiment is enough to set prices racing higher.
Opportunities arise when the market consensus is strong; when everybody agrees on some particular outcome; or when sentiment is too high or too low. The cocoa market is a particular case in point right now. The commodity has been on a bitter downtrend that has dragged down its price to ten-year lows, and sentiment is extremely poor.
by Zak Mir| Trading| 1 mins. to read 88 Energy (LON:88E) has been and remains something of a stock market darling amongst private investors. It would appear that we are approaching the next stage in the company's share price progression. Recent newsflow regarding 88 Energy centres on the onshore Alaska explorer's 270,000 acre acquisition.
by John Cornford| Commodities| 6 mins. to read Among the four main ways to make money from mining gold or silver – exploration, development, streaming or financing a mine – it is streaming (or royalties) that can often be by far the most profitable.
by Robert Stephens | Equities | 5 mins. to read Since my earliest days of investing, I've made my biggest returns on recovery stocks. While they're not for everyone, for investors like me who can take a long-term view and accept above-average volatility, they can prove to be highly rewarding.
by Evil Knievil | Evil Diaries | 3 mins. to read Mitie (LON:MTO) reports today on the outcome of a board meeting held yesterday at which KPMG's enquiry into MTO's accounting policies in practice were considered.
by Zak Mir | Trading | 1 mins. to read Vipera (LON:VIP) is one of many stocks with decent prospects which was originally flagged to me by a Twitter follower – and a decent chap to boot.
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