Five Commodity MLPs With Sky High Yields
Income investors groaned at the news of the Fed’s recent decision to hold rates in their near-zero rate rut until late 2014. That could mean nearly three years until we see an uptick in interest rates which points to three years of scrapping for steady income around markets as interest rates of 0.25% are less than enticing for most investors. But for those who live and die by dividend yields, there are still a number of options available, especially in the commodity space. Investing on the equity side of commodities can offer low correlation (though not nearly as low as the direct commodity itself) while providing a handsome income stream [see also 12 High-Yielding Commodities For 2012].
Commodity Trading Trends: Natural Gas Futures Down 15% This Year
2012 has only had a handful of trading days, but that has been plenty of time for natural gas prices to plummet. So far this year, NG futures have tanked by nearly 15% in just 11 total trading days. With futures sinking to end 2011, many speculated that prices would see some relief with cooler temperatures hitting across the U.S., but it seems that the weather has yet to let up. Though many areas have gotten their fair share of cold days, the constant fluctuation between cold and relatively warm temperatures has only steepened NG’s decline. Yesterday saw the price of gas dip below $2.5, levels not seen for well over five years [see also 25 Ways To Invest In Natural Gas].
Why It’s Time To Buy Natural Gas
Natural gas is one of the most frustrating commodity investments on the market. With volatile daily swings and unpredictable behavior, the industry has demonized this investment vehicle, and for good reason. A quick glance at a chart of natural gas prices over the past few years shows a downward slope starting in mid-2008 and continuing all the way through today. In fact, since its highs in 2008, natural gas prices have lost over 70%; one of the worst performing commodities over that time period. It is because of performance factors like this, that this commodity has established itself as a trading instrument rather than a buy-and-hold investment, but the coming month may present new opportunities [see also 25 Ways To Invest In Natural Gas].
Three Commodity Plays For 2012
It’s no secret that most commodities had a rough 2011; even top performers like gold have not been without their blips. So when it comes time to examine your portfolio for the coming year, choosing the right commodity can be a tall order. First, it is important to note that no matter which asset you choose, it will more than likely be volatile and require active monitoring as well as stop-loss protections. But while these investments may be volatile, their benefits to an overall portfolio have earned them the right to makeup anywhere from 5% to 10% of your holdings. For investors searching for the right move for 2012, we outline three enticing commodity plays to help prepare your portfolio for a clean slate after a tough year [see also 12 High-Yielding Commodities For 2012].
This Week In Commodities: December 9th Edition
This past week was yet another one dominated by European headlines, as commodity markets took a backseat to investor speculation and worry over how the EU would respond to their debt crisis. The nation-bloc finally did come to an agreement early today, which relieved some commodities of a big weight on their shoulders. Crude oil was a big story this week as it started off the week strong, hitting $102/barrel intraday, to sinking all the way to $98/barrel. Despite the good news from Europe, crude was down in early trading today. As we near the end of the year and investors prepare them selves for a, hopefully, strong 2012, it is important to gain a fresh perspective on various commodity markets. In an effort to help better educate commodity investors on today’s environment, we outline three of the best commodity stories from around the web this week [see also 25 … See the full story here
Commodity Trading Trends: Natural Gas At A Pivotal Moment
Natural gas, one of the most popular commodities in the world, has been under the microscope lately as its volatility has gone through the roof. Normally, this time of year sees gas prices rise as demand around the world increases to combat the cold weather. But due to a mild start to the winter, many people are getting along just fine without their gas-powered heating utilities. When it comes to trading natural gas and its price outlook, the general rule of thumb is not to look to today’s weather necessarily, but the coming ten-day forecast for the majority of the country. Gas prices will be more in line with the 10 day average than any one particular day, making it a commodity that requires constant monitoring [see also 25 Ways To Invest In Natural Gas].
