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      ARTICLES

            Is there a Miracle in the Oil Sands?
            Economics: Are we mired in debt?
            Markets: Has the stock market peaked?
            Economics: China: Hype or Happening
            Economics: The Demographics of Change
            Markets : Are We Running Out of Oil?
            Economics : Is There a Housing Bubble?
            Markets : Will Consumers Sink the Market?

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     CHINA AND COMMODITIES


                  Last week, the Chinese Government did something it hadn't
done for nine years - it raised interest rates. The effect? Commodity prices
tumbled sharply with the Goldman Sachs commodity index dropping by 3.7% on
Wednesday. So far, copper has tumbled 14% and nickel is down 20% all because
investors are worried that growth in China (and hence commodity demand
growth) is slowing.



            To be sure, China is the significant factor in the global growth
of the commodity sector with Chinese demand accounting for all of the growth
in the world demand for copper, 99% of the growth for nickel and 95 % of the
growth for steel. Not to mention strong demand for oil all at a time when
Russian oil supplies are being constrained by Putin's petrol politics.
Overall, while China only represents 4% of global GDP, it has accounted for
35% of overall global growth. Because of the signifgance of Chinese demand
for commodities and a long-term growth trend that is favorable for increased
demand for commodities, this sector has attracted many "fast money"
investors. Loosely regulated investment funds, or hedge funds, have been
particularly active in the commodities markets since they represent a clear
opportunity with a discernable trend - at least for now.

            Read the Complete Article
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                        Report on Money is a division of The McConnell Group
an investment research and mangement consulting firm which publishes
research reports and commentary from time to time on securities and trends
in the marketplace. The opinions and information contained herein are based
upon sources which we believe to be reliable, but The McConnell Group makes
no representation as to their timeliness, accuracy or completeness. Mr.
Stephenson writes a regular commentary on the markets and individual
securities and the opinions expressed in this commentary are his own. This
report is not an offer to sell or a solicitation of an offer to buy any
security. Nothing in this article constitutes individual investment, legal
or tax advice. Investments involve risk and an investor may incur profits
and losses. We, our affiliates, and any officer, director or stockholder or
any member of their families may have a position in and may from time to
time purchase or sell any securities discussed in our articles. At the time
of writing this article, Mr. Stephenson did not maintain an investment
position in any of the securities mentioned in this article.



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