Market Wrap-Up for Oct.29 (CF, POT, EL, AEM, BVN, PFE, more)

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We have our next bubble area in full swing. Rare Earth stocks are running rampant, especially with the first Rare Earth ETF being launched this week.

We are already seeing Microcap and OTC companies filing to change the name of their companies to have Rare Earth in their titles as well, amid tons of media buzz about the sector. We heard rumors that China (which produces the bulk of Rare Earth supplies at this point) was going to cut off rare earth supplies to the U.S, spiking various companies in the space. There has been steady demand for rare earth metals for many years, but with hybrid electric cars and devices such as laptops/ipads, the demand could continue to increase. All this said, there are scores of companies in the space that are years away from any sort of revenue and many will need to finance their ways (by selling stock through common stock offerings if they play the run-ups smart) all the way through the process. Why do I even mention this? Because there will be investors that will get lured in to the mania as we have seen before with satellite radio, fuel cell, and stem cell stocks. Can you make money if you are nimble? Of course, but human nature is that most traders fail to consistently beat the odds and too much money is usually lost in the process. Be very careful if you do try your hand at the latest bubble.

Elsewhere, commodity plays in the fertilizer space (actually profitable companies, but alas with miniscule dividend yields), are running higher - led by CF Industries ( CF ) and Potash Corp ( POT ). Gold mining plays were also higher, led by Agnico-Eagle Mines ( AEM ) and Buenaventura ( BVN ). Unfortunately the names above are not appealing to income-seeking investors as the yields are relatively a non-factor. Estee Lauder ( EL ) jumped up big on the company's Q1 results. This company also has a small dividend yield, and is better suited for investors that are looking more for growth opportunities. The stock is currently not a recommendation of ours at this time.

Looking ahead to next week, we get more big-company earnings, led by Pfizer ( PFE ), Kellogg ( K ), and Prudential ( PRU ). Be sure to catch up with our latest watchlist updates this weekend on Dividend.com Premium , and as always, you can view our current recommendations on our industry-leading Best Dividend Stocks List .

Have a great weekend everybody, and thanks for reading!

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: AEM , BVN , CF , EL , K , PFE , POT , PRU

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