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► Investor Survey (help)
Material ETF Funds US ETF Funds First Trust Materials (FXZ) Non - US ETF Funds Emerging Global Materials (EBM) |
Research Report
Material Industry Analysis ► (edit / improve) The materials industry includes companies whose sales originate from the mining, acquisition and sale of physical substances for manufacturing-related purposes. Valuation: Based on WikiWealth's Wall Street analysis, this industry is a Hold. The Main Street analysis also says Hold, with SWOT strengths much great than weaknesses and SWOT opportunities less than threats. Trade: Some of the main trade hubs include Canada, Chile, Poland, Australia, Indonesia, Pakistan, Malaysia, and South Africa, while the main material commodities include aluminum, copper, lead, nickel, palladium, silicon, steel, tin, and zinc. Trading Strategy: The materials industry tends to be sensitive to economic cycles. Look for undervalued material investments during economic recessions when stock prices are low and sell material investments during the late stages of a bull markets when stock prices are high. Material stocks quickly increase at the conclusion of a recession, because materials are the primary input for the industrial sector. The global economy is currently in a recession, therefore, it is the perfect time to purchase material investments. Upward sloping stock charts and financial news may indicate a selling opportunity while the opposite means that stocks are becoming undervalued.
Investment Impacts (help)
Canada Country Analysis ► (edit / improve) Canada (CAD) has a capitalist, service-based, economy and is one of the wealthiest countries in the world. The services and materials industry are the two main employers. Currency: the Canadian dollar has the potential to decrease in value especially if export markets for materials do not perform well. Investor Survey: the economic environment is very favorable for long term economic growth due to high scores on economic freedom and SWOT strengths. Trade: China, UK, Japan, Mexico and the US are Canada’s top trading partners, while the leading exports are energy and materials. Commodity: Canada has the capacity to produce a significant amount of crude oil. Other commodities include Uranium, lumber, zinc, and nickel. SWOT Analysis: The Leading Canadian strengths include Canada’s free trade policy, oil reserves, and universal health system. Trading Strategy: An overvalued currency and low investment flow potential are negatives, while the favorable business environment is a significant positive. Canada’s potential is neutral.
Chile Country Analysis ► (edit / improve) Chile (CLP) occupies a large portion of South America’s western coast. They have a well governed, capitalist economy with a significant reliance on Copper exports. Currency: the Chilean currency has the potential to increase in value according to the purchase price party. Investor Survey: the economic environment is favorable for long term economic growth due to high scores on economic freedom, government stability and SWOT attributes. Trade: Brazil, Japan, and USA are the top trading partners, while the leading exports are copper and silver. Commodity: Chile’s main export is copper; they are also the largest producer in the world. Much of Chile’s economic development depends on the utilization of copper. SWOT Analysis: The leading strength is Chile’s government fiscal policy, while the main weakness is the quality of education. Renewable energy offers significant opportunities, but environmental deterioration is a potential threat. Trading Strategy: An undervalued currency, favorable business environment and favorable strengths and opportunities lead to a positive outlook for Chilean investments.
Poland Country Analysis ► (edit / improve) Poland (PLN) is transitioning from a centralized, post-communist country into a capitalist economy. Currency: Poland’s currency is correctly valued with low investment flows and positive potential per the purchase price parity analysis. Investor Survey: Poland’s economic environment is moderately favorable for long term economic growth due to high scores on the SWOT analysis. Trade: Finland, the UK, Netherlands, France, and Germany are the top export partners, while Poland has a significant materials industry. Commodity: Poland produces a significant amount of coal and silver. SWOT Analysis: The leading opportunities for Poland are their infrastructure improvements and foreign investment attractiveness. Trading Strategy: A moderately priced currency, low investment flow potential and moderate business environment leads to a neutral outlook for Polish investments.
Australia Country Analysis ► (edit / improve) Australia (AUD) has a highly productive, capitalist economy with an emphasis on commodity exports, especially to Asia. Currency: Australia’s currency is moderately overvalued with low investment flow potential and negative purchase price parity. Investor Survey: Australia’s economic environment is very favorable for long term economic growth due to high scores on economic freedom and economic diversity. Trade: Indonesia, China, Singapore, the UK and Japan are the top export partners, while the leading exporting industry is materials. Commodity: Australia produces a significant amount of uranium, gold, coal, copper, aluminum, lead, zinc, and silver mostly for export to growing Asian countries. SWOT Analysis: The leading Australian strength is their abundant natural resources, while no major weaknesses were identified. Trading Strategy: An overvalued currency, negative investment flow potential, but favorable business environment leads to a neutral outlook for Australian investments.
Indonesia Country Analysis ► (edit / improve) Indonesia (IDR) has a materials industry-based economy with significant governance issues. Currency: Indonesia’s currency is undervalued according to the investment flow and purchase price parity. Investor Survey: Indonesia’s economic environment is very unfavorable for long term economic growth due to low scores on government transparency and the SWOT analysis. Trade: China, Singapore, Japan, Korea and the US are the top export partners, while the leading industry is materials. Commodity: Indonesia produces a significant amount of palm oil, copper, tin, nickel, rice, and rubber. SWOT Analysis: The leading Indonesian strength is their abundant resources, while the main weakness is over population. Illegal logging and piracy could hurt growth in the future. Trading Strategy: An undervalued currency, high investment flow potential, but very unfavorable business environment leads to a neutral outlook for Indonesian investments.
Pakistan Country Analysis ► (edit / improve) Pakistan (PKR) has a service-based economy that is moving from a centralized to a more market based system. Currency: Pakistan’s currency is undervalued according to the purchase price parity and interest rate parity analysis. Investor Survey: Pakistan’s economic environment is very unfavorable for long term economic growth due to low scores on government transparency and economic diversity. Trade: Saudi Arabia, the UK, Japan, Hong Kong and Israel are the top export partners, while the leading industry is materials production. Commodity: Pakistan produces many materials for domestic and export use.SWOT Analysis: Terrorism is Pakistan’s leading threat to short term economic development. Trading Strategy: An undervalued currency, high investment flow potential, but very unfavorable business environment leads to a neutral outlook for Pakistani investments.
Malaysia Country Analysis ► (edit / improve) Malaysia (MYR) has a fast growing materials exporting-based market economy located in South East Asia. Investor Survey: Malaysia’s economic environment is slightly unfavorable for long term economic growth due to low scores on the SWOT analysis. Trade: Indonesia, China, Singapore, Japan, and Hong Kong are the top export partners, while the leading industry is materials production. Commodity: Malaysia produces a significant amount of palm oil, tin, and rubber among other materials. SWOT Analysis: The leading strength in Malaysia is their abundance of natural resources, while the main weakness is corruption and discrimination. Swine Flu has the potential to limit growth. Trading Strategy: An undervalued currency, low investment flow potential and unfavorable business environment leads to a neutral outlook for Malaysian investments.
South Africa Country Analysis ► (edit / improve) South Africa (ZAR) has a resource rich economy in Sub-Saharan Africa. Currency: South Africa’s currency is undervalued with moderate investment flow potential, high purchase price potential, and interest rate parity potential. Investor Survey: South Africa’s economic environment is moderate. Trade: China, Japan and the US are South Africa’s top export partners, while the leading industry is materials. Commodity: South Africa produces a significant amount of uranium, palladium, diamonds, coal, and platinum for use domestically and especially as an export. SWOT Analysis: The leading South African weaknesses are their high unemployment rates, discriminatory issues and HIV Aids. The World Cup has the opportunity to propel growth, while the outbreak of disease may burden the health care system. Trading Strategy: An undervalued currency, moderate investment flow potential and moderate business environment leads to a slightly positive outlook for South African investments.
Commodity Investment Impact
Aluminum Commodity Analysis ► (edit / improve) Aluminum is one of the most widely used metals and global production is second only to iron. Commodity: Aluminum is rated a Hold. Aluminum demanders and suppliers have potential to increase in value. Investor Survey: Aluminum’s long term growth potential is moderately favorable due to high scores on the SWOT analysis. SWOT Analysis: Strength: Aluminum has a vast number of uses, which help it to maintain long term demand. Opportunity to grow: Aluminum is completely recyclable, which will help as consumers become more environmentally active; Threats to growth: Other materials with similar properties like carbon fiber could be a significant threat to aluminum. Trading Strategy: The commodity analysis hold rating indicates that aluminum should stay about the same over the short term, whereas a moderately favorable investor survey means aluminum may increase in price over the long term.
Copper Commodity Analysis ► (edit / improve) Copper is a widely used decorative and anti-bacterial compound. Copper is also a good conductor of heat and electricity. Commodity: Copper is rated a Hold. Both copper demanders and suppliers have potential to increase in value. Investor Survey: Copper’s long term growth potential is very favorable due to high scores on difficulty to expand short term supply, sensitivity to price changes and the SWOT analysis. SWOT Analysis: Strength: Copper has a limited supply and a wide array of uses. Opportunity to grow: Copper’s self cleaning properties have the potential to increase growth in the future; Threats to growth: Copper’s diminishing supply could hurt growth as substitutes become more appealing. Trading Strategy: The commodity analysis hold rating indicates that copper should stay roughly the same over the short term, whereas a very favorable investor survey means copper may increase in price over the long term.
Lead Commodity Analysis ► (edit / improve) Lead has a variety of uses, from building construction to bullets. Commodity: Lead is rated a Buy. Lead demanders have average potential to increase in value, while lead suppliers have very low potential to increase in value. Investor Survey: Lead’s long term growth potential is low due to low scores on lack of good substitutes and SWOT threats. SWOT Analysis: Strength: Lead has a limited supply; Weakness: lead poisoning is a significant threat to the use of lead. Threats to growth: lead is difficult to dispose of and it is harmful to the environment. Trading Strategy: The commodity analysis buy rating indicates that lead should increase in price over the short term, whereas a very low investor survey means lead should decrease in price over the long term.
Nickel Commodity Analysis ► (edit / improve) Nickel is corrosion-resistant, so it has many uses in the plating of coins and magnets. Commodity: Nickel is rated a Hold, because both Nickel demanders and suppliers have a high potential to increase in value. Investor Survey: Nickel’s long term growth potential is moderately favorable due to high scores on the SWOT analysis. SWOT Analysis: Strength: Nickel helps prevent contamination when used with steel. Opportunity to grow: nickel’s demand could increase as emerging markets continue to grow; Threats to growth: high exposure could lead to health risk. Trading Strategy: the commodity analysis Hold rating indicates that nickel should stay the same price over the short term. An average investor survey means nickel should stay the same in price over the long term.
Palladium Commodity Analysis ► (edit / improve) Palladium has many unique characteristics such as a low melting point and density. Palladium is mostly used in jewelry and dentistry. Commodity: Palladium is rated a Hold, because both demanders and suppliers have low potential to increase in value. Investor Survey: Palladium’s long term growth potential is very favorable due to high scores in the SWOT analysis. SWOT Analysis: Strength: Palladium has a limited supply and unique properties; Weakness: limited sources of supply can hurt growth of palladium if the price becomes too high. Opportunity to grow: jewelry growth and demand could increase the demand for palladium, while generally poor market conditions could lower growth. Trading Strategy: The commodity analysis hold rating indicates that palladium should stay roughly the same over the short term, whereas a favorable investor survey means palladium may increase in price over the long term.
Silicon Commodity Analysis ► (edit / improve) Silicon is an important component of most semiconductor devices, which are mostly used for technology applications. Commodity Analysis: Silicon is rated a Sell, because demanders of silicon have a low potential value. Investor Survey: Silicon’s long term growth potential is moderately unfavorable due to low scores on difficulty to expand supply. SWOT Analysis: Opportunity to grow: silicon’s use in the growing construction and technology industry could help future material growth; Threats to growth: silicon may be harmful to miners. Trading Strategy: The commodity analysis sell rating indicates that silicon should decrease in price over the short term, whereas a moderately unfavorable investor survey means silicon may decrease in price over the long term.
Steel Commodity Analysis ► (edit / improve) Steel is a mass produced material consisting mostly of iron. Steel is used in buildings, infrastructure, automobiles and other diverse applications. Commodity Analysis: Steel is rated a Hold. Steel demanders are fairly valued, so they may not increase in price, while steel suppliers have a higher potential to increase in value. Investor Survey: Steel’s long term growth potential is moderately favorable due to high scores on lack of good substitutes and SWOT strengths. SWOT Analysis: Strength: Steel is recyclable, which greatly enhances its environmental appeal and durability as a material. Opportunity to grow: steel’s widespread use could aid growth as the world economy grows; Threats to growth: plastic is becoming a greater threat to steel as plastics become cheaper and more durable. Trading Strategy: The commodity analysis hold rating indicates that steel should stay the same price over the short term, whereas a moderately favorable investor survey means steel may increase in price over the long term.
Tin Commodity Analysis ► (edit / improve) Tin is most often used as a corrosion protective coating for other metals. Commodity Analysis: Tin is rated a Hold. WikiWealth did not have a robust enough sample of demanders to gauge potential. Tin suppliers have average potential to increase in value. Investor Survey: Tin’s long term growth potential is moderately unfavorable due to low scores on difficulty to expand supply and substitute products. SWOT Analysis: Strength: Tin has moderate health benefits. Trading Strategy: The commodity analysis hold rating indicates that tin should stay the same price over the short term, whereas a moderately unfavorable investor survey means tin may decrease in price over the long term.
Zinc Commodity Analysis ► (edit / improve) Zinc is mainly used as an anti-corrosion coating on iron and steel. Commodity Analysis: Zinc is rated a Buy. Zinc demanders have a high potential to increase in value, while zinc suppliers have low potential to increase in value. Investor Survey: Zinc’s long term growth potential is very favorable due to high scores on the SWOT analysis. SWOT Analysis: Strength: zinc has anti-corrosion properties, which will benefit the growth of zinc as emerging countries continue to urbanize. Opportunity to grow: Zinc’s recyclable, non-toxic properties could benefit its growth as environmental concerns increase. Trading Strategy: The commodity analysis buy rating indicates that zinc should increase in price over the short term, while a very favorable investor survey means zinc should increase in the long term.
Industry Investment Impact
Industrial Industry Analysis ► (edit / improve) The industrial industry includes companies whose sales originate from the manufacturing of materials into finished goods and services. Valuation: Based on WikiWealth's Wall Street analysis, this industry is a Hold, with slightly positive potential. The Main Street analysis says a Hold with SWOT strengths much great than weaknesses and SWOT opportunities less than threats. Trade: The following countries derive much of their income from the industrial sector of the economy: Brazil, Venezuela, USA, Belgium, the EU, Germany, France, China, Hong Kong and Japan. Main industrial commodities include the following: aluminum, copper, lead, nickel, palladium, silicon, steel, tin, and zinc. Trading Strategy: The industrial industry tends to be sensitive to economic cycles. Look for undervalued industrial investments during economic recessions when stock prices are low and sell industrial investments during the late stages of a bull markets when stock prices are high. The global economy is currently in a recession, therefore, it is the perfect time to purchase industrial investments. Upward sloping stock charts and financial news may indicate a selling opportunity while the opposite means that stocks are becoming undervalued.
