Month: January 2013

London Gold Market Report
from Ben Traynor
BullionVault
Tuesday 15 January 2013, 08:00 EST

SPOT MARKET prices for gold bullion rose to a two-week high above $1680 an ounce Tuesday morning in London, before dipping back to just below that level before lunchtime, while stocks and commodities were slightly down on the day and the US Dollar ticked higher, with US policymakers continuing to disagree on fiscal matters.

“Gold is still expected to stay above the $1625 January low,” says Commerzbank senior technical analyst Axel Rudolph, “but looks to be short-term range bound.”

“As long as the environment of negative real interest rates persists, gold will remain on the shopping list of investors,” adds a note from refiner Heraeus.

Germany’s central bank meantime plans to repatriate some of its gold bullion held at the Fedral Reserve Bank of New York and all of its gold vaulted in Paris, according to a report from German newspaper Handelsblatt.

Like gold, silver touched a two-week high this morning, hitting $31.39 an ounce, before it too eased lower.

The US economy “is not out of the woods” according to Federal Reserve chairman Ben Bernanke, speaking at a question and answer session at the University of Michigan Monday.

“I want to be clear that while we’ve made progress, there’s still quite a ways to go before we’ll be satisfied…we are approaching a number of other critical watersheds.”

Bernanke noted that politicians are yet to agree a deal that would remove automatic spending cuts that were postponed to the start of March as part of the fiscal cliff deal, nor is there agreement on raising the $16.4 trillion debt ceiling.”

“It’s very, very important that Congress takes the necessary action to raise the debt ceiling to avoid a situation where our government doesn’t pay its bills,” Bernanke said.

“Congress should act as soon as possible,” says a letter dated yesterday from Treasury secretary Timothy Geithner to Republican House of Representatives speaker John Boehner, “to extend normal borrowing authority in order to avoid the risk of default and any interruption in payments.”

The letter adds that the Treasury expects its extraordinary measures designed to keep the US from hitting the debt limit will be exhausted “between mid-February and early March”.

“The full faith and credit of the United States is not a bargaining chip,” President Obama told a press conference yesterday.

“[The Republicans] will not collect a ransom in exchange for not crashing the American economy.”

“The American people,” responded Boehner after the press conference, “do not support raising the debt ceiling without reducing government spending at the same time.”

“We likely will see more protracted bickering in the weeks ahead,” says Ed Meir, metals analyst at INTL FCStone.

“This means that the gold market may go through a repeat of what we saw in December, namely, varying ‘mood swings’ that will result in directionless trading.”

Here in the UK meantime, consumer price inflation held steady at 2.7% last month, according to official data published Tuesday.

German consumer price inflation was also unchanged in December, at 2.1%, figures published this morning show.

On the currency markets, the Euro rose to a 13-month high against the Swiss Franc Tuesday.

Over in Vietnam, owners of gold bars are finding it difficult to sell their bullion, local news site Tuoi Tre reports, since the central bank restricted the number of firms licensed to deal in gold under new rules that came into effect last week.

“Many customers still bring their gold bars to sell at our company,” says Le Phat Vinh, director at SJC Can Tho, which now has to direct them to other firms as it no longer has a license.

“Many banks have yet to offer the gold bullion trading service, despite obtaining the licenses,” Vinh added.

Vietnamese press last week reported a narrowing in the gap between local gold prices and those quoted on international markets, citing prices from the central bank-controlled Saigon Jewelry Co, which became the state brand for gold bars last year and is the country’s largest producer.

Platinum is more expensive than gold again for the first time since March last year, after the price touched $1700 an ounce this morning after the world’s biggest producer Anglo American Platinum (AmPlats) said it plans to close two mines in South Africa and sell a third.

The move that see 14,000 jobs cut, out of a total of 60,000 AmPlats workers. The move is not a “reprisal” for last year’s industrial action, said AmPlats chief executive Chris Griffith, referring to strikes that affected several major platinum producers in South Africa.

“[AmPlats] will not be the last company to cut output,” says John Meyer, partner at brokerage SP Angel in London.

“We would expect platinum miners to pull back by 25-30%, which is going to have a severe impact on prices.”

Ben Traynor
BullionVault

Gold value calculator   |   Buy gold online at live prices

Editor of Gold News, the analysis and investment research site from world-leading gold ownership service BullionVault, Ben Traynor was formerly editor of the Fleet Street Letter, the UK’s longest-running investment letter. A Cambridge economics graduate, he is a professional writer and editor with a specialist interest in monetary economics. Ben writes and presents BullionVault’s weekly gold market summary on YouTube and can be found on Google+

(c) BullionVault 2013

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.

The British pound is believed to weaken opposite the Euro today as inflation in the UK is
estimated to have remained at a relatively high level in December, suggesting
that the squeeze on household incomes continue to be painfully tough. Meanwhile,
signs of stabilization continue to buoy the Euro after ratings agency Standard
& Poor’s raised its outlook on both Luxembourg and Finland earlier.

The UK Office for National Statistics is awaited to report that steep rises in energy
bills kept inflation high in December. Economists project that the Consumer Price
Index remained at 2.7 percent for the third month in a row, after a series of
energy companies pushed up prices at the end of the year. Five large energy
companies introduced price rises in December, hitting some 25 Million
households. Price pressures are said to have been partially offset by lower
fuel and food costs, but analysts say that inflation is likely to rise in the
coming months as poor harvests around the world due to extreme weather are apt
to lift food prices anew.

Rising inflation threatens to deflate the government’s recovery hopes by eroding
consumers’ disposable incomes. Recent data from the ONS revealed that average
earnings rose by just 1.3 percent in October, failing to keep up with elevated
price pressures. The government is gambling on an improvement in spending to
lift the economy this year. It estimates that household consumption should
account for 0.5 percent of the forecast 1.2 percent growth, but recent updates
from retailers suggest that spending was fairly underwhelming in the Christmas
period, solidifying views that the economy shrunk again in the fourth quarter.
In fact, NIESR has already forecast that GDP contracted by 0.3 percent in the
December quarter. In related matters, BOE Governor Mervyn King is due to
testify before the Parliament’s Treasury Select Committee in London today.
Should he express a downbeat tone on the economy, the Pound is apt to decline
on views that the central bank is still considering expanding monetary stimulus
in the coming months.

Meanwhile, the S&P upgraded its outlook on the top-grade credit rating of Luxembourg
and Finland from negative to stable, suggesting that the threat of a downgrade
has eased. The agency cited strong financial and political frameworks in both
nations as reasons to retain their prized credit ratings. On optimism that the
Euro Zone has made considerable progress in its crisis-fighting measures, the
single currency is apt to rise today, warranting a long position for the
EUR/GBP.

For more news, analysis, technical charts and candlestick analysis, visit AlgosysFx Forex Trading Solutions

Source: ForexYard

Risk aversion in the marketplace, following disappointing euro-zone industrial data, resulted in gains for the safe-haven US dollar against its higher-yielding currency rivals yesterday. Meanwhile, speculations of additional monetary easing in Japan sent the yen to a fresh 2 ½ year low against the USD and a 20-month low vs. the euro. Today, traders will want to pay attention to a batch of potentially significant US news. Specifically, the Retail Sales, Core Retail Sales and PPI figures, all scheduled to be released at 13:30 GMT, could lead to additional gains for the greenback if they come in above expectations.

Economic News

USD – US Retail Sales Data Set to Generate Dollar Volatility

The US dollar turned bullish against several of its higher-yielding currency rivals yesterday, after the release of worse than expected euro-zone industrial production data led to risk aversion among investors. The GBP/USD fell more than 100 pips during the European session, eventually trading as low as 1.6031, before bouncing back to the 1.6045 level. Against the Swiss franc, the dollar advanced more than 70 pips during mid-day trading to reach as high 0.9198, before a slight downward correction brought prices down to 0.9189.

Today, investors will be paying close attention to the US Retail Sales and Core Retail Sales figures, set to be released at 13:30 GMT. If either of the indicators comes in above their forecasted levels, the greenback could extend its recent upward trend during afternoon trading. Additionally, the US PPI figure has the potential to generate volatility for the dollar. Analysts are predicting that the indicator will come in at -0.1%, which would represent a modest improvement over last month’s -0.8% and could result in additional gains for the USD.

EUR – Euro Reverses Gains vs. Safe-Haven Rivals

After hitting an 11-month high vs. the USD and a 20-month high against the JPY during overnight trading, the euro turned bearish following disappointing EU industrial production news. The EUR/USD lost more than 40 pips during mid-day trading, eventually reaching as low as 1.3335 before bouncing back to the 1.3345 level. The EUR/JPY began falling during the early morning session, eventually losing more than 100 pips to reach the 119.00 level by the end of European trading.

A lack of significant euro-zone news scheduled for today means that any price shifts the euro sees are likely to come as a result of British and US news. A speech from Bank of England Governor King, at 10:00 GMT, could lead to risk taking in the marketplace, which would benefit the euro if he signals any improvements in the British economy. That being said, if any of the US indicators being released today come in above their forecasted levels, the euro could extend its losses against the dollar.

Gold – Gold Sees Minor Bullish Movement amid Japan Speculations

Speculations that the Bank of Japan will initiate a new round of monetary easing led to bullish movement for gold during overnight and morning trading. That being said, after gaining close to $14 an ounce to trade as high as $1674.64, the precious metal once again began falling and by the end of the European session prices stabilized around the $1666.00 level.

Today, gold traders will want to note the impact a batch of US news has on dollar pairs. If the greenback sees bullish movement against its higher-yielding currency rivals, gold is likely to become more expensive for international buyers, which would weaken demand and lead to a drop in prices.

Crude Oil – Crude Oil Comes Off 3-Month High

After coming within reach of a recent three-month high during early morning trading, crude oil prices began falling following disappointing euro-zone data which led to risk aversion in the marketplace. The commodity fell close to $1.20 a barrel during mid-day trading, eventually reaching as low as $92.93.

Today, US news may be able to help crude oil recover some of yesterday’s losses. Should the Retail Sales, Core Retail Sales or PPI figures come in above their forecasted levels, speculations that an improved US economy will lead to higher demand for oil could lead to bullish movement for the commodity.

Technical News

EUR/USD

A bearish cross has recently formed on the weekly chart’s Slow Stochastic, indicating that a downward correction could occur in the coming days. This theory is supported by the Williams Percent Range on the same chart, which is currently in overbought territory. Opening short positions may be the smart choice for this pair.

GBP/USD

While the Bollinger Bands on the weekly chart are narrowing, indicating that a shift in price could occur in the near future, most other long-term technical indicators are in neutral territory. Traders may want to take a wait and see approach for this pair, as a clearer picture is likely to present itself soon.

USD/JPY

The Relative Strength Index on the weekly chart is in overbought territory, indicating that a downward correction may occur in the coming days. Furthermore, a bearish cross has formed on the same chart’s Slow Stochastic. Traders may want to open short positions for this pair.

USD/CHF

The Bollinger Bands on the weekly chart are narrowing, indicating that a price shift is likely to occur in the near future. Additionally, the Williams Percent Rang on the same chart has dropped into oversold territory, signaling that the price shift could be bullish. Opening long positions may be the smart choice for this pair.

The Wild Card

CAD/JPY

The Relative Strength Index on the daily chart is in overbought territory, indicating that bearish movement could occur in the near future. This theory is supported by the Slow Stochastic on the same chart, which has formed a bearish cross. Forex traders may want to open short positions for this pair today.

Forex Market Analysis provided by ForexYard.

© by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

By www.CentralBankNews.info Here’s today’s Central Bank News link list, click through if you missed the previous link list. The list comprises news about central banks that is not covered by Central Bank News. The list is updated during the day with the latest developments so readers don’t miss any important news.

By www.CentralBankNews.info     Russia’s central bank held its benchmark refinancing rate steady at 8.25 percent, as expected by most economists, as inflation continues to exceed the bank’s target while economic activity is slowing down.
    But the Bank of Russia, which raised its rate by 25 basis points in 2012, said bank lending rates were still relatively high and “the risk of a significant economic slowdown stemming from the tighter monetary conditions are considered minor.”
    The central said it would continue to monitor inflation risks, global economic developments and the “consequences of the monetary conditions tightening for the Russian economy,” in a statement issued after a meeting of its board of directors.
    Inflation in Russia was estimated at 6.8 percent as of Jan. 9, 2013 from a year earlier while core inflation eased to 5.7 percent in December, the bank said. Data showed headline inflation of 6.6 percent in December and the bank targets inflation of 5-6 percent.
    “The inflation rate staying above the target for a prolonged period of time may affect economic agents’ expectations and thus pose inflation risks, despite the absence of any significant demand-pull price pressures,” the bank said.
     The central bank said there was a “gradual cooling of economic activity” in November, in line with the previous trend but economic confidence remains positive and labor market conditions together with credit expansion provides support to domestic demand.
     “According to the Bank of Russia estimates, the gross output remains close to its potential level,” the bank said.
     Russia’s Gross Domestic Product expanded by 0.6 percent in the third quarter from the second for annual growth of 2.9 percent, down from 4.0 percent in the second.
   
    www.CentralBankNews.info

By MoneyMorning.com.au

In the last twelve months, the iron ore price has been up and down like a five-year old on red cordial.

First it plummeted from $150/tonne last April, to $89/tonne by August – a 40% drop in just four months.

That’s a savage correction.

But then the bounce of all bounces followed

In the four months since the correction finished, the iron ore price has now jumped 74%, to reach $155 /tonne.

Not only has it recovered all the lost ground from last year, but it now sits at a 15-month high. Giddy stuff indeed; and now Deutsche Bank analysts expect iron ore to hit $170 within weeks.

Iron ore stocks have done well on this rally, with BHP Billiton (BHP) up 10.6%, Fortescue (FMG) up 20.7%, and Rio Tinto (RIO) up 27%.

But sitting quietly, right next to iron ore, there is another equally profitable opportunity waiting for investors…

While the media have had endless fun writing about iron ore for the last few months, hardly a single column inch has been devoted to the opportunity poised to follow in iron ore’s path.

The commodity I’m talking about coking coal.

After iron ore, coking coal is the main ingredient in the production of steel.

And because steel mills purchase the two commodities to produce the same product, the prices of iron ore and coking coal tend to rise and fall together.

I got my hands on the data for you this morning to prove my point (thanks to ANZ’s commodity research team). I’ve taken the data and produced this chart to show you how the prices typically track each other.

Coking coal: getting ready to rally next?

You can see how the two peaked and troughed together in the first half of 2010. Then after peaking together in early 2011, they both fell for the next eighteen months. And by the time iron ore finished its 40%, four month correction, coking coal had nursed an equally rough 28% fall.

So you can see how closely coking coal and iron ore move together.

However, while iron ore has soared 74% in just four months, coking coal has done nothing.

Actually that’s not quite right, coking coal has in fact fallen three bucks: from $162/tonne to $159/tonne!

This is very odd, and I’ve highlighted it on the chart above. With such a big move in iron ore, you’d normally see an equal or bigger absolute move in coking coal.

What’s even stranger is that the iron ore price has almost caught up with the coking coal price. Coking coal is often twice the price of iron ore. But with coking coal at $159 today, and iron ore at $155, there is an unusually small $4 difference between them.

To me this looks like a clear signal to start running the ruler over coking coal stocks.

Coking coal looks very likely to start following in iron ore’s path soon, and this will help the valuations of coking coal stocks; many of which look very cheap after two long years of pain.

This isn’t to overlook some of the unique factors behind iron ore’s rally, that don’t apply to the coking coal market.

The Chinese have bought aggressively in anticipation of supply disruption from the cyclone season. With a lot of iron ore shipping from the North West of Western Australia, cyclones can limit exports. Aussie coking coal, in comparison, mostly ships from the East coast so is less at risk.

Another factor pushing up iron ore is the iron ore ban in India. Exports from India make up a large part of Chinese iron ore imports, so this has tightened the market dynamics.

These factors only part explain the huge rally. And none of this explains why coking coal has stood still. So I expect it’s just a matter of time before the coking coal price snaps, and starts going back up.

One clear signal to expect this soon is the rising steel price.

Steel price – up 13% in four months

Since iron ore started its colossal bounce, the steel price has increased steadily by 13%.

China is still only halfway through its current 5-year plan, in which 12 trillion Yuan ($US 2 trillion) is committed to developing power, rail, transport and water infrastructure. Importantly, the third year of a five-year plan generally sees the biggest infrastructure spend. This will require a great deal of steel.

With last year’s power transition out of the way, China is now pushing ahead with completing the projects in the current plan. The period after a new Chinese leadership historically sees a jump in economic activity, as they like to make their mark early on.

So 2013 is set up to be a big one for Chinese infrastructure spending, and we can see that in the fast recovering steel price.

Yet, despite all this, there is little action in the coking coal price.

I think this anomaly can only last for so long – and is an investment opportunity worth keeping an eye on.

Aussie coking coal juniors are pretty badly beaten up at the moment, but with a recovery in the coking coal price, investors will start buying them up soon.

And as always, it pays to get set before the crowds descend.

Dr Alex Cowie
Editor, Diggers & Drillers

From the Port Phillip Publishing Library

Special Report: The Big Money Secret of Ironstone Mountain

Daily Reckoning: A North Korean Investment Opportunity

Money Morning: How Central Banks Are Letting Inflation Get Out of Control

Pursuit of Happiness: Are You Brave Enough to Break From Technology?

Diggers and Drillers: Why You Should Invest in Junior Mining Stocks

By MoneyMorning.com.au

A combination of hard work and good fortune will pay off for U.S. auto companies in China in 2013, with Ford Motor Co. (NYSE: F) and General Motors Co. (NYSE: GM) both expected to book record sales.

Both U.S. auto companies set sales records in 2012. Sales of Ford vehicles in China rose 21% year over year to 626,616.

GM, which is neck-and neck with Volkswagen AG (VLKAY) for the title of auto sales leader in China, reported combined sales from its joint ventures of 2.85 million vehicles, a year-over-year increase of 11.7% over 2011.

Both Ford and GM have built factories in China, and both U.S. auto companies plan to continue expanding there in 2013.

Ford plans to introduce 15 new models in China and double its production capacity to 1.2 million vehicles by 2015. The company also plans to double its network of dealerships in the country.

GM, in the middle of a five-year plan to invest $7 billion in China, has plans to add a third factory and increase production to 2 million vehicles annually by 2015. GM has set a goal of selling 5 million vehicles a year in China by 2015.

GM also plans to add 400 dealerships in China next year, which would give it 4,200 in all.

Here’s what U.S. auto companies see in this foreign market.

China’s Opportunity for U.S. Auto Companies

Like many large multinational corporations, Ford and GM have sought to capitalize on the massive size of the Chinese market and its growing middle class.

And every indication is that all the planning and investments of the U.S. auto companies in recent years are about to pay off in a big way…

“China remains a highly attractive market due to its long-term growth potential. It is no surprise that auto makers are playing some big bets in China, and doing so ahead of other markets,” Andrew Thomson, head of KPMG’s Asia-Pacific automotive consulting practice, told The Wall Street Journal.

The Chinese auto market is finally recovering from the hangover of a Chinese government stimulus program that had sales rising at a blistering 32% in 2010. Auto sales in China grew a mere 2.5% in 2011, but increased 4.3% last year to 19.3 million vehicles.

Projections for 2013 have China’s auto sales increasing at a rate of 5% to 10%. The China Association of Auto Manufacturers last week forecast a 7% rise for 2013, which would push sales past 20 million for the first time.

“It’s still a quite healthy demand for passenger vehicles,” Klaus Paur, the global head of automotive research for Ipsos, told Agence France-Presse. “Overall, this paints quite a good picture for development in the China market.”

Looking further ahead, IHS Automotive forecasts auto sales in China will grow more than 58% to about 30.6 million vehicles a year by 2020, almost twice the size of the U.S. market.

Anti-Japanese Sentiment Helps Ford, GM

Meanwhile, U.S. auto companies stand to benefit from the ongoing dispute between China and Japan over several islands in the South China Sea. Public anger at a Japanese plan to buy the islands led to riots in Chinese cities in September and a general boycott of Japanese imports ever since.

Toyota Motor Corp. (NYSE ADR: TM) sales fell 49% in September and 44% in October, with Honda Motor Co. (NYSE ADR: HMC) and Nissan Motor Co. (NSANY) also reporting record drops last fall. Sales of Ford and GM cars rose in the same period.

Japanese auto sales in China are expected to recover somewhat this year, but not to pre-dispute levels.

The backlash against Japanese brands will continue to boost sales for the U.S. auto companies as long as the island dispute simmers. That shows no sign of being resolved any time soon, as China sent several fighter jets into the area over the weekend.

With their expanding production and a number of models designed specifically for the Chinese market, Ford and GM have positioned themselves perfectly for more gains in the world’s largest auto market.

“Not everyone will be the winner but some of the automakers that invested previously in R&D will be,” Jeff Chung, a Hong Kong-based analyst at Daiwa Securities Group, told Bloomberg News. “The automakers with the best product mix, best geographic mix will still enjoy very high growth rates.”

David Zeiler,
Contributing Writer, Money Morning

Publisher’s Note: This is an edited version of an article that originally appeared in the Money Morning US edition.

From the Archives…

Why the Australian Stock Market Will Climb in 2013
11-1-2013 – Kris Sayce

What Lower Interest Rates Mean for Australian Stocks in 2013
10-1-2013 – Kris Sayce

Downside in the Yen: Shinzo Abe and the Three Bears
9-1-2013 – Murray Dawes

How the ‘China Money’ Could Push Silver 58% Higher in 2013
8-1-2013 – Dr Alex Cowie

Brightest Comet in 333 Years to Signal a Major Rally in Gold?
7-1-2013 – Dr Alex Cowie

EURUSD remains in uptrend from 1.2998, and the rise extends to as high as 1.3403. Further rise could be expected and next target would be at 1.3500 area. Support is at 1.3300, as long as this level holds, the uptrend will continue. On the downside, a breakdown below 1.3300 support will suggest that a cycle top is being formed on 4-hour chart, and consolidation of the uptrend is underway, then pullback to 1.3200 area to complete the consolidation could be seen.

Forex Signals

By The Sizemore Letter

Listen to Charles Sizemore discuss one of his favorite closed-end fund investments with Jeff Reeves on The Slant.  Learn more about closed-end fund investing in general about his favorite pick in particular by tuning in.

Per The Slant, ”Charles Sizemore likes GSV Capital (Nasdaq: $GSVC), a closed-end fund with a big Twitter stake, as a possible money doubling play in 2013.”

If you cannot view the embedded media player, follow this link.

SUBSCRIBE to Sizemore Insights via e-mail today.

The post Charles Sizemore Chats With Jeff Reeves on The Slant appeared first on Sizemore Insights.

You’ve heard the phrase “Follow the money.”

I’ve got a new one for you…

Follow the people.

That’s where the money’s going. Like iron to a magnet. Consumerism… demand… growth. Follow the people, and the money will follow you.

Let me throw a couple numbers at you…

407: The number of emerging market “middleweight” cities with populations between 150,000 and 10 million

40%: The amount these cities will contribute to global growth

By 2025, these 407 “middleweight” cities will contribute more to global growth than the developed world and global “mega cities” (with populations over 10 million) combined.

Over the next 12 years, 235 million households will earn more than $20,000 in the developing world. That’s up from 80 million in 2007. It means an extra $3.1 trillion worth of consumption will hit the markets in developing economies.

That’s how investors will make the truly big money in stocks over the next decade and beyond. They will follow the people…

Populations in these “middleweight” cities are expected to grow 1.6 times faster than the global average. That means more workers and more consumer demand. Countries with the strongest urban GDP growth are going to be places companies are likely to set up shop.

Over the long term, the demographic shifts into a consuming society are going to keep the BRICs hot… and put other countries on the map you might not have considered hot spots.

Here’s what I want you to do. Take a look at your portfolio. Check out the big multinational companies you own. See how much exposure they have to these markets.

Many of them will be underexposed to the big demographic shifts we’re talking about. That means they’ll be counting on developed markets to grow revenues. Not a smart move over the long term.

If you’re underexposed to global economies with growing “middleweight cities,” one stock you should consider buying is Unilever PLC (UL:NYSE). This consumer goods, food and beverage maker has a major footprint in markets with growing consumer armies.

Unilever – which owns brands such as Ben & Jerry’s, Lipton and Dove among others – was setting up shop at the very start of the big surge in emerging market consumer growth. And even earlier than that in China, India, Indonesia and Brazil where the company has had a presence for half a century.

More than 2 billion people use a Unilever product every day. But there are about 1.8 billion people set to move up the consumer ladder and become consumers by 2020 – most of them in developing markets.

Unilever is already positioned in these “high traffic” regions of the world. And it is looking to expand into the next untouched markets such central Africa, Myanmar and Peru.

That makes it the perfect company to “follow the people”… and let the money come to you.

Happy investing,

Sara

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