When in Doubt Go to Cash

Energy:I do not like the action in Crude so I advised clients to cut their shorts in half. Do not misinterpret me; I am not getting long but rather lightening up on short trades. Though I do not agree with the acceleration of commodities that we are seeing, I refuse to fight it. Hedgers should also start to wade into longs in heating oil and RBOB to protect from upside spikes. My suggestion is a long future against a sale of out of the money calls 1:1. High to low natural gas moved 30 cents. Tighten up stops just below the 18 day MA which should ensure at least a small profit unless we gap down tomorrow. My take is if we break that level we may get a chance to get one more buy below the $2 level…stay tuned.

Posted in Agriculture, Commodity Futures, Copper, Corn, Energy, Exclusive, Gold, Industrial Metals, Livestock, Natural Gas, Precious Metals, Silver, Soybeans, WTI | Tagged , , , , , , , | Leave a comment

5 Best Performing Commodity ETFs Over The Last 3 Years

Its been more than four years since financial markets took their unprecedented nose dive, and yet some investors still cringe at the mere mention of the year that most wish they could forget. The crash of 2008 shook markets around globe, hammering  down prices in nearly every corner of the investable universe. On March 9th 2009, investors were finally able to see the light at the end of the tunnel as rock-bottom markets prepared to make their turnaround. The pickup spurred investors’ appetites for riskier asset classes, luring many to the lucrative world of commodity investing. For the most part, commodities can find a place in almost everyone’s portfolio; the asset class can provide uncorrelated returns and diversification benefits, as well as serve as a potential hedge against inflationary pressures [see also 12 High-Yielding Commodities For 2012].

Posted in Commodity ETF Analysis, Copper, Energy, Exclusive, Gasoline, Industrial Metals, Silver, Tin | Tagged , , , | 7 Comments

12 High-Yielding Commodities For 2012

Commodity investing has been extremely popular in recent years as investors have discovered the benefits that these investments can offer for an individual portfolio. Exposure to commodities offers benefits like low correlation, inflation hedges, and also heavy exposure to some of the world’s fastest growing markets. But there is still something of a disconnect between income investors and commodities, as these investments are typically seen as growth plays or simply left for active traders. But those who overlook commodity stocks with even mediocre yields could be missing out [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later].

Posted in Academic Research, Agriculture, Aluminum, Commodity ETFs, Commodity Producers, Copper, Energy, Exclusive, Gold, Industrial Metals, Natural Gas, Precious Metals, Silver, WTI | Tagged , , , , , , , , , , , , , , , , , , , | 131 Comments

Three Commodities Dividend Lovers Must Own

Over the years, value investing has emerged as one of the favorite strategies for a number of individuals and advisors. A steady stream of income that dividends provide can help protect a portfolio from market dips as well as adding an inflation hedge. The methodology has become so popular that some investors swear by it and are uneasy about making allocations to anything that lacks an important dividend yield. Many feel that value principles conflict with the commodity space; when someone thinks of commodity investing, they typically think of active trading of futures contracts or exchange traded products. But there are a number of securities that may be overlooked [see also Dividend Special: Top Companies In Every Major Commodity Sector].

Posted in Brent Oil, Coal, Copper, Energy, Exclusive | Tagged , , , , , , , | 7 Comments

This Week In Commodities: December 2nd Edition

As we enter the final month of the year, investors have plenty of things to digest. This past week has been one of the strongest in recent memory as euro hopes combined with positive U.S. data to push markets higher. Some of the biggest commodities on the week have been natural gas and crude oil. Natural gas in the U.S. has seen stockpiles hit historic highs as mild weather across the country has slaughtered demand for the commodity. Thursday saw inventories decrease to ease some concerns, but natural gas is still under a fair amount of pressure. Crude oil is poised to finish out the week above $100/barrel as the fossil fuel has been powered by strong equities and favorable news from around the world [see also Three Things Wall Street Journal Didn’t Tell You About Commodities].

Posted in Copper, Exclusive, Gold, Industrial Metals, Precious Metals, This Week In Commodities | Tagged , | Leave a comment

Dividend Special: Four Commodity Stocks Yielding Over 5%

Commodity investing has long been utilized by active traders but left out of the hands of more traditional investors that build long-term portfolios. But as the years have progressed, investors have seen the benefits of setting aside anywhere from 5%-10% of your assets to this crucial asset class, as it offers the potential for uncorrelated, and often times stellar, returns. A long term play in most commodity securities, however, is more of a growth play than anything else, as the investor hopes for the underlying commodity to either appreciate in value or it its overall use, leaving value investors out to dry [see also The Guide To The Biggest Companies In Every Major Commodity Sector].

Posted in Coal, Commodity Producers, Copper, Energy, Industrial Metals, Natural Gas, WTI | Tagged , , , , , , | 3 Comments

13 Ways To Invest In Copper

Copper is arguably the most useful industrial metals, as it can be found in a number of household products. Aside from its most evident use in wires and plumbing, copper is a key element in auto parts like brakes, cooling systems, and even the Statue of Liberty, which features over 80 tons of copper in its brilliant structure. It seems that today, the only metal investors truly care about is gold, as its volatile price swings as well as rapid price appreciation in recent years has pushed it into the limelight. But gold’s practical uses are extremely limited, making it more of a speculative investment than one in industry. Copper on the other hand, is the perfect investment for those looking for a commodity tied to more than just volatility [see also 25 Ways To Invest In Silver].

Posted in Academic Research, Copper, Exclusive, Industrial Metals | Tagged | 13 Comments

Inside Copper’s Plunge: How To Make A Play

Copper is perhaps the most popular industrial metal, not only in its application to the real world, but also from an investing standpoint. As one of the most versatile and important metals, it makes sense for copper to be an investor favorite, after all, copper has an endless list of uses. Among plumbing and wiring, copper also shows up in power generation and transmission, heating and cooling systems, and telecommunications equipment. Copper is a key part of motors, brakes, and other auto parts, and is widely used in electronic products as well [see also Ultimate Guide To Copper Investing].

Posted in Commodity ETFs, Commodity Futures, Copper, Exclusive, Industrial Metals | Tagged , | Leave a comment

Dividend Special: Top Companies In Every Major Commodity Sector

As the years have progressed, commodity exposure has evolved from a binary factor, either you have it or you don’t, to a necessary component of every portfolio. But as markets have been continually beaten down as of late, for many investors, finding the right commodity allocation has been something of a difficult task. A number of investors have stopped looking for growth, and taken cover in value funds that pay out annual yields in a time when no returns are guaranteed [see also The Guide To The Biggest Companies In Every Major Commodity Sector].

Posted in Academic Research, Agriculture, Aluminum, Copper, Exclusive, Gold, Industrial Metals, Steel, WTI | Tagged , , , , , , , , , , , , , , | 20 Comments

The Guide To The Biggest Companies In Every Major Commodity Sector

Trading commodities has been popular for many years, as investors can use a number of different resources to gain access to their favorite commodity investments. But it was only a more recent development that commodities earned their keep in a long-term portfolio. Now, a small, but important, allocation to commodities is a necessity of any well diversified portfolio, as these investments offer a number of advantages such as hedging against inflation and maintaining low correlation levels to traditional asset classes [see also Commodity Investing: Physical vs. Futures].

Posted in Agriculture, Aluminum, Commodity Producers, Copper, Energy, Exclusive, Gold, Lumber, Silver, Steel, Timber, WTI | Tagged , , , , , , , , , , , , , , , , | 28 Comments
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