January 8th 2011

Climate Change Weakening Indian Tea Crop

Tea growers in India’s northeastern region are reporting consistently weaker tea… and pointing the finger at climate change.

Nobody likes weak tea — least of all the farmers who account for a third of the world’s global tea production.

And this particular region, Assam state, produces nearly 55 percent of the nation’s total tea crop.

Farmers are dealing with a dual-problem: shortfall in production — a drop in production of nearly 30,000 tons of tea — and a lesser-quality crop.

Rising temperatures and changes in rainfall patterns are likely the culprit in changes in plantation yield, directly effecting the flavor of a notoriously strong, hearty, black tea, often marketed as a “breakfast tea,” that come from this region of India.

“We are indeed concerned,” Rajib Barooah, a tea planter in Jorhat — Assam’s main tea growing district — told the Associated Press.

“Assam tea’s strong flavor is its hallmark.”

Tea growers are worried not only for the future profits, but of a decline in consumer demand. Assam tea is covete

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Tags: Climate Change, Tea

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December 28th 2010

How To Reduce Your Investment Risks

Investors cannot do much about the volatility of the markets with a short time horizon because the risk of potential loss is high with stocks and other real investment assets. Stocks are more volatile in price than bonds. With a holding period of 74 years, annual returns averaged 12.4 percent for large-cap stocks, 5.5 percent for intermediate-term government bonds, and 3.9 percent for Treasury bills. Stocks clearly outperformed bonds, and Treasury bills. However, large- and small-cap stocks also have the greatest risk, as measured by their standard deviations. For example, the variability of returns for small-cap stocks can range from a gain of 45.8 percent to a loss of 21 percent. The variability of returns for intermediated-term government bonds is considerably less.

With a short while horizon, the potential chance of loss from making an investment in stocks increases.

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Tags: Investment, Investment Risks

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December 24th 2010

Will Companies Invest Their Christmas Cash Back in the U.S. Economy?

Tomorrow’s Christmas Eve… In my family, we used to celebrate at my grandmother’s house back in Maryland, and then have Christmas Day at my mother’s home.

My cousins, my brother and I would each get to open a gift at my grandmother’s house.

More often than not, it was pajamas.

We would all go home late at night, our bellies full, our eyes heavy, and snuggle into our new pajamas to wait for Christmas morning.

There was a worn-out excitement to the whole night. A four-hour sugar rush doesn’t wear well when you’re that young.

This year has a very similar feeling — in the investment world, that is. I don’t normally gorge myself on Christmas cookies and fudge anymore. What I mean to say is that it feels like everybody’s frantically buying this year.

I’m just not completely sure that this enthusiasm is real. It could just be a four-hour sugar rush…

The U.S. Economic Sugar Rush

I don’t mean to be a downer. This year the markets have staged an amazing comeback. The Dow should close the year up 10% at least, with the S&P 500 scoring even higher at 12% or more.

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Tags: Back, Back Economy

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December 23rd 2010

Surprise! AIG is a hot stock again. Seriously.

NEW YORK (CNNMoney.com) — AIG is one of the best performing stocks in the S&P 500 this year. That’s not a misprint.

Shares of the insurer, which was at death’s door in September 2008 before the government bailed it out to the tune of $182 billion, are up a stunning 86% this year.

Fortune 500: Top-performing stocks of 2010 Fortune 500 companies have had a good year. As the economy continues to recover, so do profits. From Dillard’s to US Airways, here are the biggest winners. View photos

What’s most amazing about this is that the company’s fundamentals are still shaky. AIG (AIG, Fortune 500) reported a net loss of $2.4 billion in the third quarter. For the first nine months of the year, AIG has lost $3.3 billion. Much of the losses are due to one-time charges.

The stock’s also enjoyed a solid rally despite the fact that many short sellers continue to bet against it.

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Tags: Stock, Stock Again

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December 22nd 2010

(XOM) U.S. Crude Stockpiles Report Another Decrease

The U.S. Energy Department’s weekly inventory release showed a larger-than-expected drop in crude and distillate stockpiles, while gasoline supplies continued with their climb. Meanwhile, refinery run-rates were down slightly from the previous week.

The Energy Information Administration (“EIA”) Petroleum Status Report – that contains data for the previous week ending on Friday – outlines information regarding the weekly change in petroleum inventories held and produced by the U.S., both locally and abroad.

The report provides an overview of the level of reserves and their movements, thereby helping investors to understand the demand/supply dynamics of petroleum products. It is an indicator of current oil prices and volatility that affect businesses of companies engaged in oil and refining industry like ExxonMobil (XOM), Chevron Corp. (

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Tags: Stockpiles, Stockpiles Report

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