New York, London, Chicago

This time I write to you a few miles above the US Canadian border on my return from having visited two of the world's leading trading cities - New York and Chicago. There is little more you can do to get a feel of the American economy or mentality than a road trip. I drove with family from New York to Chicago. I can tell you now this country, the US, will find it incredibly difficult to ever reduce its consumption of oil and consequently do something about energy consumption or oil prices.

Why? The ability to drive around the country or indeed fly is for them a political right - the right to be free, to be an American. Limit that and you might as well call them un-American.

In New York, my brokers gave me a tour of the floor of the New York Stock Exchange. The citadel of capitalism is on all sides barricaded. But you know what? Competitors care not. And those pit traders are competitors. The floor booth where my brokers are located on the floor of the NYSE is called the garage because that is where Rockefeller would park his car when he came to the exchange.

If the global political battle is some kind of crusade, some kind of battle of civilizations, of histories, I will put my money on the character of the men and women on the floor of the New York Stock Exchange, and the descendants of those who built America. I do not fear what others might fear from the global political conflict.

Chicago is famous for the world's largest commodities exchange of course. As we took a boat out to Lake Michigan one is reminded of the 'Amber waves of grain' described in the US national anthem. This is why here there is a commodities exchange, where farmland meets port.

But it also explains why energy prices will be a difficult problem fro Americans to handle - as you see the lights on the Chicago, or New York skyscrapers, those are the American signature. They consume energy - it is to be an American. And fuel is cheaper than water in the US - so how can you see oil going lower? Well it won't be lower consumption. Watch instead for any innovation in fuel technology - but I fear that takes time.

And if we are looking at the US markets - then what? For the longer term investor, Exchange Traded Funds are my favourite as they track more closely than tracker funds. And do you know how the Dow looks over the past five years? It is down over the past five years. All those improved profits and it is still down over the past five years.

That does not mean it is undervalued, but longer term, I remain pleased with the US and continue with my holding of the Exchange Traded Fund the 'FFF' which tracks the US Fortune 500 companies.

Value-Growth

On my value growth criteria which are based on stocks meeting revenue and profit growth and good value based on criteria such as price earnings growth, the following names come up. Remember they are for a 6 month outlook: Chloride Group, Fenner, Rio Tinto, Rensburg Sheppards, Schroders.

Remember I am targeting about 20-20% with the value growth criteria. Last year it produced 33% return. On my momentum value indicator I have: ICI, International Power, Raymarine, Ideal Shopping Direct, Chorion, Monstermob.

Crazy Small Stock

These are high risk volatile stocks which could move sharply higher or move sharply lower in my view, but will almost certainly not stand still. Names on the radar include: Anglesey Mining, Character Group, Alterian, Manchester & London, QXL.

Also, if you would like a free multi-media CDROM on 'Investing Better', which covers spreadbetting, CFD trading and momentum indicators like the MACD, posted to you then drop me an email with your postal address to alpesh@tradermind.com.

Spreadbetters

Spreadbetters and futures traders often look at hard and soft commodities. Here's my quick take on the action for the week ahead:

• Oil: Sideways
• Copper: Sideways
• Gold: Sideways to lower
• £/$: Down
• Dow: Mixed to lower
• FTSE 100: Mixed to lower
• Soyabean Oil: Sideways