With rising tensions in the Middle East creating a tailwind for oil prices, I've gotten a lot of requests this week asking what to do about oil, and by extension, commodities in general.
So, here's the thing: pretty much no one invests in commodities for their appreciation potential long-term.
That's because they're so cyclical-some are so reliably cyclical, in fact, that their charts are basically a flat line going back years. Any real money you're going to make off commodities is going to come from using them as a trading vehicle. This means either getting in for a short time and setting up tight stops to take profits from a sudden move up, or using options plays to catch a windfall from whatever leg of the cycle you happen to be on at the time.
Fortunately, it's easier than it's ever been for everyday investors like you to do these kinds of moves and add commodities to your arsenal of moneymaking assets, thanks to the rise of ETFs that give broad exposure to just about every commodity market you can think of. Want to trade oil? There's the United States Oil ETF (USO). Want to trade gold? The SPDR Gold Trust (GLD) has you covered.
Given the geopolitical tensions, a lot of commodities are on the rise. It may not last long, so now is the time to act if you want the best chance at a decent payday.
Check out my video today for the best potential targets and how to play them:
Make sure you keep an eye out for next week's video, when I'll be covering the banking sector as earnings season continues to move along. And as always, watch this space for more opportunities as we close out the week.
The post The Commodities Sector Is on the Move - Here's How to Play It appeared first on Total Wealth.
About the Author
Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.
The work he did laid the foundation for what would later become the VIX - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.
Shah founded a second hedge fund in 1999, which he ran until 2003.
Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.
Today, as editor of Hyperdrive Portfolio, Shah presents his legion of subscribers with massive profit opportunities that result from paradigm shifts in the way we work, play, and live.
Shah is a frequent guest on CNBC, Forbes, and MarketWatch, and you can catch him every week on Fox Business's Varney & Co.