| All signs tell us that inflation is around the corner. | | | | This is another company that should benefit from a |
| Today March 21, 2009, nobody knows exactly how | | | | rebound of oil prices. |
| steep price increases are going to be. Should we | | | | 3.- CHINA MOBILE (NYSE: CHL). Their number of cell |
| expect a rise between 5% and 15% per year during | | | | phone subscribers continues to increase and their |
| the next thirty six months? To which extent should | | | | profits should go up or, at least, remain stable. If the |
| we fear a much higher inflation? | | | | Chinese currency gains value, this will result in extra |
| Whatever the answer to this question, I am already | | | | profits for international investors holding these shares. |
| adopting for my own investment portfolio a | | | | The current yield lies around 3.5% and the price |
| defensive strategy against inflation. Since I am too | | | | earnings ratio is about 10. |
| much of a dividend lover and I know little about | | | | 4.- TELKOM INDONESIA (NYSE:TLK). With a current |
| precious metals, I am not going to purchase gold. | | | | yield about 8% and a price/earning ratio of 11, these |
| In my view, there are two alternatives that should | | | | shares allow an easy way to invest in the Indonesian |
| lead to results that are roughly similar to purchasing | | | | economy. The company provides fixed line and |
| gold: | | | | cellular communications and serves more than 63 |
| * Investing in oil companies, since sooner or later, | | | | million customers. |
| inflation will propel oil prices to a higher plateau. | | | | 5.- AMERICA MOVIL (NYSE:AMX). The price/earnings |
| * Buying shares of companies that operate in | | | | ratio is about 11 and the yield is around 1.5%. This |
| countries with short-term prospects of economic | | | | company operates cellular phone networks in Mexico, |
| growth. | | | | Argentina, Chile, and other South American countries. |
| At this moment, I am considering the following five | | | | They provide services to around 150 million |
| companies for possible purchases for my own | | | | customers. |
| investment portfolio: | | | | These five large companies should offer no great |
| 1.- MARATHON OIL (NYSE:MRO). The current low | | | | operational surprises. I am risk-shy and this is the kind |
| price of oil has driven down these shares more than | | | | of investments I favour in my own portfolio. Can |
| 40% during the last year. Their price/earning ratio | | | | anyone guarantee a rise in the shares of oil |
| today is about 5 and they are yielding around 3.5%. | | | | companies and international telephone providers? No, |
| The profits of this company should rise if oil prices go | | | | nobody can offer such guarantee. |
| back to the level of a few months ago. | | | | For my own investments, I try to rely on reasonable |
| 2.- CHEVRON (NYSE: CVX). The low price of oil these | | | | assumptions and these five companies seem |
| days has pushed these shares more than 20% | | | | reasonably well positioned to maintain their value in |
| downwards during the last year. The current price | | | | case of high inflation. |
| earning ratio is about 5.5 and the yield around 3.8%. | | | | |