Another 2008 Pick

[Fish2006]

Yet another ETF (detect a theme here?). This one is PHO - the Powershares water resources ETF.

This is a nice, fairly simple way to make a play on the global water shortage. Personally, I am a huge proponent of profiting off of the pain of others - and this is one great way to do it.

It really is this simple - as standards of living in India and China increase, they wash themselves more, they use more water, and viola, you gots yourself a water shortage. Even better if you a.) believe global warming is real and b.) you are a cynic like myself and believe not much will be done about it - this is a great way to profit from it.

Don't buy the China and India story? How about Vegas? Go visit Lake Mead, come back, and tell me we are not going to have a *huge* water problem in the coming years.

Lastly, in a world where commodities are the new wealth (it is better to get paid in oil, water, and things with real tangible worth) - buying these kinds of ETFs that own things rather than paper (currencies) is a nice way to make sure you are hedged against devaluation of currencies here *and* abroad.

I recommend buying this in the low 20s - which you still can do. It is moving slower than the PBW shares I talked about last week - which is fine - less of a bubble for now - but still, you should see a nice 10-15% move per year with this in the coming years - more if we get a real water crisis.