Blog : Penny Stocks: What's Happening Right Now
by Peter Leeds on November 21st, 2011
If you've followed my penny stocks blog for any amount of time, you'll know my philosophy - right now, due to the current economic uncertainty and global chaos, there are tremendous opportunities for investors in penny stocks. This is even more true now, as recent events have pushed many penny stocks into even more attractive ranges.
OK, so here's what's happening. Specifically, you should be paying attention to the following events, and keeping in mind how they will affect your investments in penny stocks. (I'm talking, by the way, about high quality penny stocks like the companies we profile on our Hot List - NOT the junk that free newsletters about penny stocks are pushing onto people!)
- Executed CIA spies
A dozen American spies have been taken into custody by Hezbollah, in Lebanon and Iran. They will be used as pawns in an increasingly escalating game of brinkmanship between Iran, Israel and America.
The timing is not at all coincidental, as we mentioned in our latest penny stocks blog. America, Iran, Israel, Russia, and China are all rapidly increasing their threats and propaganda towards each other, and this is just the latest event in that progression.
The concern is that it will be used as a pretext for an American strike against nuclear facilities in Iran, and is likely to garner public support of the American people if the spies are detained or worse, executed.
We should all be worried about any conflict with Iran, not just investors in penny stocks, but all people. It will not go well.
- What's just happened in Egypt?
As we explained on our penny stocks blog while everyone was cheering the new Egyptian government a few months back, the new military rule will not be better (and will probably be worse) than the Mubarak regime was. As we stated on Peter Leeds penny stocks, there are still no food or jobs, so the Egyptians will revolt again. And they have.
Today, at least 22 people died, and nearly 2,000 were injured in the latest riots. However, the army-appointed government did give in somewhat, handing in their resignations.
It remains to be seen where Egypt goes from here, but we will say that there is still no food or jobs!! Unless the next government can pull a few rabbits out of a hat, expect round three in a few months.
What does this mean for investors in penny stocks? It means higher uncertainty, and possibly higher oil prices, which can be good for oil production penny stocks.
- Echo, Echo, Echo....
Besides Egypt, investors in penny stocks should be watching Spain, Greece, and Italy as well. All of their governments fell over the last week or so. In other words, nobody knows much about who is in charge, during this time of economic uncertainty. Not good for the markets, not good for any type of investment, penny stocks included. Of course, this also pushes prices of many penny stocks lower into highly undervalued territory (even for penny stocks!).
- Budget Super Committee
People are worried that the Super Committee (SC) is going to not come up with any answers. The thing that informed people already know, however, that the vast majority don't understand, is that the SC is a joke. Whether they come up with a deal or not makes no difference.
The (possible) cuts are simply decisions to overspend by less, not actual cuts. Even if enacted, they wouldn't come into effect for a couple of years. Even if enacted, they would be repealed (or not enforced) down the road, when it came time to push them through.
In other words, the SC was a joke, and is a distraction from the fact that America is broke. People can keep ignoring that fact, or they can position themselves to profit from it, with precious metals, agricultural stocks, and select penny stocks.
We suggest that you profit from it with fundamentally solid penny stocks - penny stocks that are in industry groups that will benefit from economically tough times. Some of our gold and precious metals penny stocks will help you preserve your wealth. Our oil penny stocks will do very well in the coming months as oil prices spike back up, as we're expecting. Even our technology penny stocks are in demand, as they help companies save money during these tough times.
And of course, our military-related penny stocks should do very well, especially if this brinkmanship in Iran doesn't cool off.