U.S. Housing Market Faces Potential Headwinds

Since the unprecedented crash of 2008, U.S. markets have struggled to make up lost ground. After five years, the economy has finally started to pick up steam – slowly, but surely. And as the economy continues to pick up its pace, many investors are returning to the corner of the market that was one of the primary sources of the 2008 financial crisis: housing. Across the board, housing stats have been on the rise in recent years, including home prices, housing starts, building permits, and construction. A closer look at the industry in recent months, however, reveals several red flags [for more commodity news and analysis subscribe to our free newsletter].

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3 Commodities For A Housing Recovery

Homebuilders and other housing industry stocks have been strong performers in 2012 as low interest rates offset higher underwriting standards for home loans. The SPDR S&P Homebuilders ETF (XHB) rose more than 54% since the beginning of this year, while the iShares Dow Jones U.S. Home Construction ETF (ITB) is up more than 74% over the same period [for more housing news and analysis subscribe to our free newsletter].

Posted in Agriculture, Commodity ETF Analysis, Commodity ETFs, Commodity Producers, Copper, Industrial Metals, Lumber, Timber | Tagged , , , , , , , , | 4 Comments

Big Money Betting On Commodity Bear Market

Commodities have enjoyed several strong years thanks to emerging market growth and increased demand around the world. As analysts continue to tout hard assets like gold and timber, investing demand for this asset class has continued to rise. It is now recommended that investors set aside anywhere from 5-10% of their assets for commodity exposure. But while these investments have been fruitful for the past few years, a number of institutions have begin to build a bearish sentiment for the future of the commodity space [for more commodity news and analysis subscribe to our free newsletter].

Posted in Agriculture, Commodity ETFs, Commodity Futures, Gold, Precious Metals, Timber | Tagged , , , | 5 Comments

Timber Catches Fire In Sandy’s Wake

The past week has seen a number of factors combine to push timber prices and forestry stocks higher, with the most notable force coming from Hurricane Sandy. The superstorm wreaked havoc on the East Coast, as its destructive path reached 1,000 miles across, leaving millions of homes and businesses damaged and powerless. Estimates of the damage have come in at a staggering $50 billion, making Sandy the second most expensive storm in U.S. history, behind Hurricane Katrina [for more timber news and analysis subscribe to our free newsletter].

Posted in Agriculture, Commodity ETF Analysis, Commodity ETFs, Commodity Producers, Lumber | Tagged , | 1 Comment

The Largest Private Landowners in the U.S.

Buying and owning hard assets like farmland and timberland has been a popular investing method for many years. Unfortunately, it is too costly and difficult for the average retail investor, so it is often left to those who have access to a significant capital base. For those who can invest in land, it can often be one of the best investments you will ever make, as the potential for profit is quite large [for more commodity news and analysis subscribe to our free newsletter].

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Timber Set to Soar Says Jeremy Grantham

Jeremy Grantham, famous for co-founding the Grantham Mayo Van Otterloo (GMO), has made a series of forecasts that investors may want to pay attention to. Grantham has become a household investing name with his uncanny predictions of numerous asset bubbles as well as his general knowledge of the financial world. According to Mr. Grantham, the next seven years will see timber outperform all other asset classes. The prediction laid out a 6.5% annualized return for this commodity, while other asset classes lagged behind [for more timber news and analysis subscribe to our free newsletter].

Posted in Actionable Ideas, Agriculture, Asset Allocation, Commodity ETFs, Commodity Futures, Timber | Tagged , , , | 3 Comments

Three Commodities to Bet With Buffett

Warren Buffett, the Oracle of Omaha, is one of the most famous investors in the world. So when he makes a big bet, there are plenty of individuals who are willing to follow or are at least curious as to whether or not they should do the same. Buffett’s latest bet was placed in the U.S. housing industry, a market segment that has been rattled since 2007 and is still struggling to find a foothold. The famed businessman justified his bet by stating that he has watched every asset class besides housing for the last two years and now that markets have flattened, he sees housing with room to run [see also Why Buffett is Dead Wrong on Gold].

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The Beginner’s Guide to Timber Investment Funds: How to Invest in Timber

The benefits of commodity investing have been well-documented in recent years, as this asset class has become a more widely-accepted part of every investor’s portfolio. These assets are typically used for their appeal as inflation hedges as well as their low correlation to the overall stock market. When most investors think of these kinds of assets, big name commodities like gold and silver come to mind, yet their are a number of other options that present equally compelling investment theses. One of those investments is timber, a commodity that has proven its worth over time [for more commodity news subscribe to our free newsletter].

Posted in Agriculture, Asset Allocation, Commodity ETFs, Commodity Futures, Commodity Producers, Timber | Tagged , , , , , | 8 Comments