Nouriel Roubini, known as “Dr. Doom” for his outlandish predictions on the economy, has a choppy forecast for the coming year. Back in May, Roubini predicted a tumultuous 2013 based on a combination of four factors, “stalling growth in the U.S., debt troubles in Europe, a slowdown in emerging markets, particularly China, and military conflict in Iran” writes Ansuya Harjani. Now, Roubini says that things are shaping up in favor of his foresight, as China is indeed faced with a slowdown, the euro zone is in shambles, the U.S. is sputtering along, and things in Iran have heated up once again [see also Doomsday Special: 7 Hard Asset Investments You Can Hold in Your Hand].
With a disturbingly accurate prediction of the future (although some would argue that all four of the aforementioned factors were already obvious at the time Roubini made his remarks), investors may want to keep their wits about them for the coming year. Whether you are a fan of Dr. Doom or not, these factors certainly have the potential to throw the global economy into a tailspin, potentially worse than 2008. Those looking to protect themselves before such an event have several options in the commodity space to safeguard their capital. Below, we outline three commodities to own if and when the “Perfect Storm” rains down on the world economy [for more commodity news and updates subscribe to our free newsletter].
Gold & Silver
Though you may have your preferences between the two precious metals, each will do a good job of protecting the value of your capital in the case of a market dip. Note that gold may be the better option of the two as it has less industrial use than silver, which will drag the white metal down a fair amount more. You can either own physical bullion (your safest bet) or utilize the physically-backed SPDR Gold Trust (GLD) and iShares Silver Trust (SLV) [see also Three Reasons Why Gold Is Overvalued].
Hard Assets
There is not one specific commodity to choose from under the “hard assets” moniker, but you certainly have a number of options. Assets like antique guns, diamonds, classic cars, rare books, and a number of others will maintain their worth no matter what markets are doing, hence the attraction to these investments. Note that these will be relatively illiquid, but at the same time ensure that some rogue trader at a big bank won’t bring down the value of your capital.
Tobacco
Another relatively impervious commodity, tobacco certainly has its grips in the world. In fact, some people use tobacco more during tough times to help get them through. In good times and in bad, tobacco investments tend to perform relatively well compared to overall markets. One favorite investment of many comes from Phillip Morris International (PM), as they have a gargantuan market share as well as an enticing dividend yield [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later].
Don’t forget to subscribe to our free daily commodity investing newsletter and follow us on Twitter @CommodityHQ.
Disclosure: No positions at time of writing.
[...] Jared Cummans: Nouriel Roubini, known as “Dr. Doom” for his outlandish predictions on the economy, has a choppy forecast for the coming year. Back in May, Roubini predicted a tumultuous 2013 based on a combination of four factors, “stalling growth in the U.S., debt troubles in Europe, a slowdown in emerging markets, particularly China, and military conflict in Iran” writes Ansuya Harjani. Now, Roubini says that things are shaping up in favor of his foresight, as China is indeed faced with a slowdown, the euro zone is in shambles, the U.S. is sputtering along, and things in Iran have heated up once again [see also Doomsday Special: 7 Hard Asset Investments You Can Hold in Your Hand]. [...]
[...] the markets have frothed back and forth during the last six months, a number of asset classes have floated to the top. On the flip side of [...]
[...] Energy investing is one of the most lucrative commodity sectors, as these assets tend to exhibit high volatility that active traders desire. But trying to keep up with these assets can be a tall order, as there seems to be endless news and issues surrounding energy commodities. As such, we have scoured the internet world to find the best resources for energy futures in an effort to keep traders and investors more up to date on their favorite commodities. Below, we list 25 of the best resources on the internet to ensure that you have the most up to date information at your fingertips [see also Four Commodities To Buy Before Roubini’s “Perfect Storm”]. [...]
[...] all know that the world of commodities can be extremely volatile, especially during times of economic uncertainty. Still, there are a number of analysts and experts that like to weigh in with their opinions on [...]
[...] Dr. Doom has diagnosed the global economy once again, except this time the symptoms are pointing to something far worse than many pessimists could have expected. Nouriel Roubini, perhaps best known for predicting the 2008 financial meltdown, recently outlined his forecast for 2013, which looks to be centered around a towering list of uncertainties. He made his prediction for the “Perfect Storm” back in May of 2012, citing a combination of four factors that would inevitably lead to the next great collapse [see also 4 Commodities To Buy Before Roubini's Perfect Storm]. [...]
[...] The past few years have seen the global economy fall on some hard times. At the head of it all has been the U.S., whose fiscal policies and rampant immoralities led to some of the biggest banks in the world bringing down the local economy. In order to keep our heads above water, the Federal Reserve has stepped in on numerous occasions, offering bailouts for hundreds of billions to try and salvage the economy. But the economy has done little to make a solid recovery and instead seems addicted to its regular injections of quantitative easing. As such, the financial situation surrounding the U.S. and our debt policies is beginning to grow concerning [see also Four Commodities To Buy Before Roubini’s “Perfect Storm”]. [...]
[...] Silver is one of the most popular and useful metals in the world. The majority of this commodity in mined in Latin America, while its consumption is spread all over the world. With such a heavy global reach, it should be no surprise to see that silver is also a big-name financial instrument. For those looking to dabble in silver futures, there are a number of options available, leaving some to wonder where to begin. Below, we outline strategies for trading silver futures as well as a few other products that offer similar exposure [see also Four Commodities To Buy Before Roubini’s “Perfect Storm”]. [...]
[...] If history has been any indicator, when Ben Bernanke speaks, markets go wild. As if last week’s heavy trades weren’t enough to confirm that theory, there is even more evidence correlating to Bernanke’s speeches and movements in the U.S. dollar. Specifically, Bernanke’s mentions and hints of quantitative easing tend to have a dramatic impact on the dollar, as the previous two programs have established a trend that may send commodities soaring in the short term [see also Four Commodities To Buy Before Roubini’s “Perfect Storm”]. [...]
Good presentation. Straight to the point. No gimmicks, no advert. Thanks
[...] Nouriel Roubini aka “Dr. Doom” has been in the headlines a fair amount as of late, as he has predicted a perfect storm that will culminate sometime in the next year. Roubini figured that sluggish U.S. growth, Europe debts, emerging market slowdowns, and a possible military conflict in Iran will come together to drag the economy back down to 2008 levels if not even lower. But of course, there are others who have equal reasons to prove that the economy is improving. Leave it to the doctor to squash a number of these reasons with his vast economic experience and knowledge [see also Four Commodities To Buy Before Roubini’s “Perfect Storm”]. [...]
[...] This futures-based fund invests in contracts for three different commodities: soybeans, corn, and wheat. Coincidentally, those are three of the best performing commodities for the year, as the drought has caused shortages and price spikes. Currently, JJG has more than $180 million in assets and trades roughly 150,000 times each day. The fund charges an annual fee of 0.75% [see also Four Commodities To Buy Before Roubini’s “Perfect Storm”]. [...]
[...] The threat of a massive economic meltdown has had investors talking ever since the 2008 recession. Each person has their own plan for how they would survive another stock market crash, and what they would do to keep their heads above water. Most people feel that the likelihood of this happening is relatively low, but there are still others who note the wide variety of problems in today’s world and prepare for the absolute worst. For those looking to hedge against a stock market downturn, we outline five-must buy commodities to help protect your portfolio [see also Four Commodities To Buy Before Roubini’s “Perfect Storm”]. [...]
[...] world stated that his certainty of another U.S. recession is 100%. Faber is often referred to as Dr. Doom, though that title is more famously used for Nouriel Roubini. Faber’s theory was based on the [...]
[...] So much of today’s economy is focused on the unemployment rate and the number of people who are unable to secure a job in their local environment. While many will urge that the issue is getting better day by day, it doesn’t take a hot-shot Wall Street analyst to figure out that the job market in the U.S. is still very poor. One of the biggest issues with the unemployment rate of 8.3%, a figure which many base their view of the economy on, is that is is simply untrue. In reality our unemployment rate is much higher, but some crafty techniques for measuring unemployment allow the government to report that figure [see also Four Commodities To Buy Before Roubini’s “Perfect Storm”]. [...]
[...] other investments when some of the brightest, richest men in the world are all preparing for an economic collapse. The choice is yours, will you bet like a billionaire, or are these worries blown out of [...]
[...] market slowdowns along with economic crises all around the world have painted the picture for some dark days ahead. While we are not saying that gold will hit $10,000 in 2013, we certainly are not ruling out the [...]
[...] We all know that there have certainly been a number of government flops or cover-ups in our day, so some feel that these figures are not so far fetched. After watching the LIBOR scandal unfold, many learned that it may have infected gold and silver markets with manipulation as well as some other assets. There is even a major controversy over unemployment figures themselves, as our country has been drastically under-reporting the number of those without jobs for decades. But to suggest that Obama actually manipulated the numbers himself is quite a bold claim [see also Four Commodities To Buy Before Roubini’s “Perfect Storm”]. [...]
[...] Although BNO is publicly available to anyone with a trading account, it is not a product that is intended for everyone. First and foremost, BNO should not be used by long-term, buy-and-hold investors: positions in futures-based products, like BNO, can quickly turn sour and should be monitored frequently. Instead, BNO will be most appropriate for active and niche investors who already have a firm grasp on the energy market [see also Four Commodities To Buy Before Roubini’s “Perfect Storm”]. [...]
[...] Aside from the fact that Roubini was prepared for and betting on QE3, he has also predicted a “perfect storm” for the global economy in 2013. He combined stalling U.S. growth, debt troubles in Europe, a [...]