Look into Legendry investor "Jim Rogers" commodity index and you will see all it includes is agri, oil, metal & minerals. http://www.rogersrawmaterials.com/
One thing a common investor like me should always remember "Commodity trading is very volatile", probably suited for a very long term investment or a pure speculative play. Recently there was a news that owing to fall in copper prices, china is stockpiling copper for future construction and growth. Isn't it leading to volatility and prices become too sensitive to supply and economies health?
Lets start with how and what you can do to be part of this trade.
- Individual stocks: Starting from copper like Freeport copper and Southern copper to Steel stocks like US steel and Nucor. More contrarian investment can be in agricultural stocks like Agrium, Monsanto etc.
- ETF: Starting from broad natural resources etc like GSG, RJI etc to concentrated commodity funds like DBA, DBC and yeah 'MOO' too.
- Gold ETF: GLD & IAU are best with high trading volumes. If you like Gold and Silver together, than there is 'CEF', central fund of canada
- Leveraged ETF: double short and long ETF for short term trading etc.
- Mutual funds: Nearly all mutual fund houses offer a natural resources funds. Some are tied with stocks like FNARX, PRNEX & PSPFX, whereas some are tied with treasury & futures like PCRDX & RYMBX.
disclaimer: I own Freeport copper stock (FCX), PSPFX and PCRDX.
1 comments:
Commodities to attract more investor
http://www.kiplinger.com/businessresource/forecast/archive/commodities_to_attract_more_investors__.html
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