Profit from the Hunt for "Blue Gold"

If you live in California, the best investment you can make right now is a forked stick. July 01, 2014     Profit from the Hunt for "Blue Gold"   Drillers working 24-7... but they aren't searching for oil How a nasty drought can benefit your portfolio Plus: Keep your sanity with stop losses   Greg Guenthner coming to you from Baltimore, MD... Greg Guenthner If you live in California, the best investment you can make right now is a forked stick. As the Golden State enters its third year of drought conditions, drillers are working around the clock to help desperate farmers find water to keep their crops and orchards alive. "It's officially getting crazy," one driller told National Public Radio yesterday. "We go and we go, but it just seems like we can't go fast enough." But of course, tapping the state's shrinking aquifers is just a temporary solution to a much bigger problem. Water scarcity is a theme we've covered for years. Now, we're once again seeing headlines almost every week on the international devastation water shortages can cause. Capital & Crisis editor Chris Mayer is no stranger when it comes to the business of water. In fact, he's been on the hunt for water-related investments since 2006 when he released a special report on water titled Blue Gold. It included a mini-portfolio of five stocks -- three of which went on to more than double within 18 months. Chris shared with me a recent Wall Street Journal article that caught his eye. Not only are depleted aquifers a major concern in California. The cost of water is also reaching new heights. An acre-foot of water can cost up to $1,300, Chris noted. That's up from $40 a few years ago. "That is a Bitcoin-like move," Chris says. "And the cost of water has led many growers to leave tens of thousands of acres fallow. This year, a half a million additional acres will sit idle. That's acreage that would have gone toward growing melons, bell peppers, tomatoes, broccoli, cabbage and lettuce." Water shortage issues aren't just confined to the U.S. it's a global issue that isn't about to disappear with a couple of well-placed rainstorms... We're already seeing the powerful effects of these water shortages in several stocks and commodities. Rising coffee prices this year due to dry weather in South America is just one example that's hitting you right in the wallet. Your morning latte costs a little extra this month--not to mention the fact that coffee is one of the best performing assets so far this year. Even if you don't live anywhere near some of the places dealing with drought, you certainly pay for it one way or another... If you're paying, you might as well bank some gains along the way. There are plenty of "backdoor" water investments out there. Major companies that make filtration equipment, pumps, and drilling rigs all have some exposure to our water theme.         Collect as Much as $450 on Your Lunch Hour... Using this "Secret Job"   Even if you're employed, you can collect between $250 to $900 – starting as early as 11:45 a.m. tomorrow... Without buying stocks or options, or collecting dividends.   Get the amazing details here.           Rude Numbers Targets, Predictions and Wild Guesses   $7.7 trillion will go toward investments in new power plants across the globe by 2030. According to Bloomberg, renewable energy sources will receive about two-thirds of this massive investment... 75% of all stocks trading on major U.S. exchanges are currently trading above their respective 50-day moving averages... $1,504 is where you'll find platinum futures early this morning. That's a big breakout to new 2014 highs. Meanwhile... $1,327 marks the spot for gold futures. Gold is up about $5 in early trading this morning... 1,957 is where you'll find S&P futures just before the morning bell. Stocks are looking to start their day on a positive note after losing steam Monday afternoon...     Rude Trends When to Buy... When to Sell   Over the past couple of weeks, you've sent me several questions about stop losses. So I want to help you improve your trading results by telling you how I like to use stops. Hopefully, what works for me will help you alleviate frustration and maximize your gains. First, I don't like to set hard stops. When you put in a stop order with your brokerage account that instructs a sell order to go through if a certain price is hit, it's out there for everyone to see. Sometimes, market makers "go after" stops if there are enough clustered around the same price. There's nothing worse than getting stopped out of a position, only to see it snap right back and move higher. So as a rule, I only set a stop loss order if I'm going out of town or if I'll be away from my computer or smart phone for an extended period of time. Instead of setting a hard stop, I make a mental note of where I would need to sell if the trade doesn't go my way. That gives me the flexibility to sell right away if I sense trouble, or wait until the next day if a stock closes just a couple of pennies below my stop price. I know stop losses are tricky. That's because figuring out when to sell is much more difficult than knowing when to buy. Anyone can buy a breakout. But booking a profit at the right point (with all of the emotions that go along with it) can be extremely difficult. Here's how you keep your sanity: understand that you're never going to sell at the very top. You take the biggest chunk of a move you can and you don't look back. Agonizing over every penny left on the table will land you in the loony bin. [Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner]     Ignore At Your Own Peril Today's Must Read Links   How to Become Your Own "Banker" [must see] BOMBSHELL: 50 years after the death of President Kennedy... "Secret $200 Retirement Blueprint" Exposed     BE SURE TO ADD dr@dailyreckoning.com to your address book.       Additional Articles & Commentary: Join the conversation! Follow us on social media:         The Rude Awakening is committed to protecting and respecting your privacy. We do not rent or share your email address. By submitting your email address, you consent to Agora Financial delivering daily email issues and advertisements. To end your Rude Awakening e-mail subscription and associated external offers sent from The Rude Awakening, click here. Please read our Privacy Statement. For any further comments or concerns please email us at rude@agorafinancial.com. 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