Cotton Fares Well In 2013
While many commodity investors and traders primarily focus their attention on larger natural resources like gold or oil, there are plenty of other opportunities in the space; one of them lies within the soft commodity of cotton [for more commodity news and analysis subscribe to our free newsletter].
China Demand Gives Cotton A Boost
Cotton has gotten plenty of attention from investors in the textile industry recently. Last year, the soft commodity suffered significant losses, surrendering just under 13% on the year. This year, however, rising demand from China has the bulls lining up to place bets on what they believe will be a great year for cotton [for more commodity news and analysis subscribe to our free newsletter].
Which Cotton ETF Is Right For You? BAL vs. CTNN
Simply put, cotton makes an appearance in the daily lives of almost every population around the globe, as this commodity is used in a wide variety of textile products. Since global consumption patterns dictate the fluffy commodity’s movements, cotton prices are known to exhibit volatility, making a trade in cotton a potentially lucrative opportunity for investors and traders alike. Additionally, cotton has been shown to maintain a fairly low correlation to other asset classes, such as stocks, giving investors yet another option to add meaningful diversification to their portfolios.
The Five Minute Guide to Cotton ETFs
The world of commodities was not accessible to most average investors just a few short years ago. But today, there are exchange-traded funds that allow investors to gain exposure to many commodities, both as an asset class and as a way to participate in the movements of an individual commodity, even rather obscure ones, without a futures account.
