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November 3, 2009

Five Ways to Ride the Commodities Bull

By Martin Hutchinson, Contributing Editor, Money Morning

 
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8 Responses

  1. Martin | November 3, 2009

    I think you are correct that low interest rates will keep the interest in commodities up, chances are it is another bubble (and so says Roubini too). The danger is that the USD is not allowed to drop anymore. The Fed could raise interest by a symbolic 0.25% and cause great damage to stocks and commodities.

    The issue with commodities is that they are usually correlated. Investors should also properly diversify if they go into commodities, high correlations are not good. GRN and BAL have the perfect 0.0 score for uncorrelated ETFs. These are global carbon (is carbon a commodity?) and cotton. Other good pairs:

    UAG/SGG
    JJT/AGF
    GRN/GCC

    (correlations taken from full list at http://shockedinvestor.blogspot.com/2009/10/correlation-of-all-commodity-etfs.html)

    Reply
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  6. Frank Fisher | December 29, 2009

    BHP is the world`s biggest miner & has oil.Australian gold stokes took over after the Californian gold rush–why no metion? I have on ASX__HEG,SHX.NQM. all penny stokes with great potential.

    Reply
  7. debora edholm | December 31, 2009

    Can anyone say silver at 50 and gold at 3500 an ounze? Of course commodities are going to go thru the roof. Take a look at the charts. And where on Gods green planet are we recovering? Real estate prices will drop more and the dollar is going to be almost worthless. Really I can not see any type of recovery in any arena. HYPERINFLATION yes………….

    Reply
  8. Grace Tonna | January 11, 2010

    Dear Mr. Hutchinson,
    I’m a Canadian resident. My money are locked in RSP., and I’m invested in Direct Investing with the Royal Bank of Canada.
    If I invest in the U.S. what are the tax implications?
    I’m interested in Tiny Texan. How can you invest in Tiny Texan if it’s not on the market?
    When I was interested in Penny Stocks and I called to invest in MDOR, they warned me that they don’t do paper trade because of what happen in the past. These stocks most of them are over the counter.
    That something that I never did and I don’t have any expierence.
    I hope you answer my email.
    Thank you for your information.

    Sincerely,

    Grace Tonna

    Reply


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