Great Value in Global Minerals and Materials For the last several months concerns have been rising about the slowing economic data coming out of China as the government tries to balance growth with sound fiscal and monetary policy. Some fear that the so-called super cycle of commodities that has been driven by China’s above trend growth is abating to an alarming level that could damage demand for global mineral and material companies. From an investment perspective and not that of a commodity trader, I think the recent softness in the global commodities has created great value for anyone with an outlook longer than six months.When I combine the recent commodity softness driven by the Chinese so-called “soft landing” with the improving economic signals coming out of the U.S., I believe the global demand for copper, iron ore, and other important minerals and materials continues to be strong if one thinks about long-term demographic trends. And, while I admit that growth driven by China carried the commodity ball for the last five years as U.S. economic conditions suffered from the financial and housing recession, it now appears that U.S. economic conditions are recovering and can more than make up for the Chinese softness. The increasing momentum in the U.S. should not be left out of the commodity equation in my opinion. Even with China’s growth over the last decade, the U.S. economy is more than double that of China and will play a growing influence on global growth over the next five years. The Labor Department recently reported the best six-month streak of job growth since 2006 while sales of previously owned homes held in February reached a two-year high. Also, we can’t forget that 2011 is an election year in the U.S. which has traditionally been positive for economic growth (real or engineered).From a portfolio perspective, I believe it is important to research and seek material positions (sorry for the pun) in global mineral companies such as Freeport-McMoRan Copper and Gold*, and BHP Billiton Ltd*. Along with mineral companies, I include agricultural companies and gold producers in any global portfolio basket of securities. Gold prices have recently abated from the all-time high prices realized in 2011. While I expect gold prices will remain volatile over the next several months, I believe the continued high level of debt creation in Europe and the United States will continue to have a positive influence on gold prices over the next three to five years. Finally, I believe that long-term demographic trends continue to favor agricultural products and nutrients. The desire for a better quality of life around the world will continue to enhance the fundamentals for many great agricultural based companies.While short-term trading with commodities and materials is often volatile, the long-term trends are undeniable in my opinion and I plan to use any softness to add to positions and bolster portfolios.Have a great week,Roger N. Steed March 26, 2012KRS Capital Management, LLC (“KRS Capital Management” or “Adviser”) is a fee-only SEC registered investment adviser located in the State of Michigan. KRS Capital Management does not receive any compensation from any of the mutual fund companies, brokers or entities connected with securities mentioned herein. KRS Capital Management and its representatives are in compliance with the current notice filing requirements imposed upon SEC registered investment advisers by those states in which KRS Capital Management maintains clients. KRS Capital Management may only transact business in those states in which it is notice filed or qualifies for an exemption or exclusion from notice filing requirements.KRS Capital Management’s newsletter services are limited to the dissemination of general information that is financial and/or investment related to United States residents residing in states where providing such information is not prohibited by applicable law. Accordingly, the content in this newsletter should not be construed by any consumer and/or prospective client as KRS Capital Management’s solicitation to effect or attempt to effect transactions in securities or the rendering of personalized investment advice for compensation via this medium. Furthermore, the information resulting from the use of data or other information in this newsletter should not be construed, in any manner whatsoever, as the receipt of, or a substitute for, personalized individual advice from KRS Capital Management. Any products mentioned in this newsletter may not be eligible for sale in some states or countries, and they may not be suitable for you. Before buying or selling any mutual fund, exchange-traded fund, security, or investment, read the prospectus carefully. KRS Capital Management is neither an attorney nor an accountant, and no portion of the web site content should be interpreted as legal, accounting or tax advice.*KRS Capital Management’s newsletters may contain opinions and statements concerning or related to securities and investments. The Adviser does not represent, endorse, or warrant the timeliness, sequence, accuracy, or reliability of any such information. Certain portions of KRS Capital Management’s web site and publications (i.e. newsletters, articles, commentaries, etc.) may contain a discussion of, and/or provide access to, the Adviser’s (and those of other investment and non-investment professionals) positions and/or recommendations as of a specific prior date. Due to various factors, including changing market conditions, such discussion may no longer be reflective of current position(s) and/or recommendation(s). Moreover, no client or prospective client should assume that any such discussion serves as the receipt of, or a substitute for, personalized advice from the Adviser or from any other investment professional. Where individual companies or types of investments are named herein, it is for representational examples only are not in any way to be construed as securities recommendations. KRS Capital Management cannot and does not give any assurance that the companies that may be included in our newsletters, present or future, will be profitable. Owners and staff members of KRS Capital Management may own various investments (included those that may be listed in our newsletters). Any one or more of their positions may not necessarily be the same as that of a client of KRS Capital Management. The owners and employees of KRS Capital Management may also for their own accounts buy, sell, or hold long or short positions in mutual funds, exchange-traded funds, common stocks or other securities of companies mentioned in the Adviser’s publications. Investments carry an inherent element of risk, including the potential for loss of principal. Please seek personalized and professional assistance from your personal fee-only Registered Investment Adviser before making investment decisions.A copy of KRS Capital Management’s current written disclosure statement discussing KRS Capital Management’s business operations, services, and fees is available from KRS Capital Management upon written request. KRS Capital Management does not make any representations as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party incorporated herein and takes no responsibility therefore. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. Where general market data or statistics are provided herein, they are provided by sources that we have deemed to be reliable.You may not use, adopt or attempt to register anywhere in the world, whether alone or together with any other mark, symbol, or name, any KRS Capital Management trade name or mark or service name or mark that is similar or confusingly similar to the KRS Capital Management trademarks. All other trademarks, service marks, brands, and names are the property of their respective owners.