While the rest of the investing world seems to be still obsessed by [[USO]], yours truly has become bored with the attention and has been trying to locate another non obvious source of investment.

Why even [[DUG]], which I have harped on so much in the last few weeks has been doing well (i.e. becoming more investment worthy by becoming cheaper) - it should be noted that the mainstream press is beginning to pick up on the theme. This morning’s Globe and Mail has an article that is basically an endorsement of the coming collapse in [[USO]] by investing in [[DUG]] called How to Profit if Crude Collapses. What is there to look at if not the Black Gold and it’s global implications? What is more important than oil to modern civilisation?

Water

From Buying the Petroleum of the ‘next century’:

Oil and gas, metals and fertilizers and food are still going strong, while investors have only recently started to talk about water. And yet, water has much the same imbalance between supply and demand as traditional resources. The investment dealer Goldman Sachs recently described water as the “the petroleum for the next century.”

….The basic argument for investing in water is scarcity, starting with the fact that just 2.5 per cent of the world’s water is fresh

….One thousand litres of water are needed to produce a kilogram of wheat, while an equivalent amount of beef requires 13,000 litres.

One thousand litres of water are needed to produce a kilogram of wheat, while an equivalent amount of beef requires 13,000 litres.

OK so what do I look for?

Below are some charts from Friday’s ETF Trends - I have pulled the charts from finviz.com:

PHO

CGW

FIW

PIO

The Takeaway

At this point I don’t understand enough of the water market to comment fully other than to pass on these possible investment options. Daytraders will probably be bored with the volatility for the next ten years but, the important point is that to find new investment vehicles one must learn to think laterally.

Don’t just think related to the herd (either ahead of the movement or in contrawise against it) but finding things that no one ever heard of is what makes the difference between good investors and historic investors.

Disclaimer

Do your own freakin’ homework. This post was informational and I don’t endorse any of these. You should examine my other posts before spending a dime on anything I say.

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