Commodities

  • 13 Oct
    Cocoa Prices Are Low, But Should You Invest?

    Cocoa Prices Are Low, But Should You Invest?

    • Cocoa prices are at multi-year lows.
    • I’ll analyze the supply and demand situation to see if there might be profit opportunities.
    • A cocoa ETF isn’t the only way to profit form cocoa.



    Introduction

    Investing in commodities is relatively easy compared to other stocks.

    As an example, to profitably invest in Apple (NASDAQ: AAPL), you should be able to estimate iPhone sales for the next few years. What’s difficult is that there are a myriad of factors that influence iPhone sales. More →

  • 09 Oct
    Put A Ring On It – Why It Might Be Time To Invest In The Diamond Industry

    Put A Ring On It – Why It Might Be Time To Invest In The Diamond Industry

    • Diamond producers expect a supply gap to form from 2019 onwards, which is a great fundamental indicator.
    • However, the current environment isn’t the best, and has made miners cheap. Many of them are down more than 30% this year.
    • I’ll discuss mining costs, risks and rewards, how to invest, and analyze I’ll two miners.




    Introduction

    A recent Bloomberg article described how diamond stocks have performed extremely badly in the last year. More →

  • 05 Oct
    The Electric Vehicle Trend Will Be Explosive – Here’s How To Profit On It

    The Electric Vehicle Trend Will Be Explosive – Here’s How To Profit On It



    • The latest news surrounding the electric vehicle market is extremely positive.
    • However, not every related investment will do well. We’ll discuss car manufacturers, graphite, cobalt, nickel, copper, and lithium.
    • There’s one way to profit from the growing trend that carries little risk, is already profitable, and definitely offers high upside in the next decade.

    Introduction

    We all know transportation will be electric in the future. However, this doesn’t mean that every investment in the sector is a smart investment.

    A great example of how investments in hot trends can work out is Amazon (NASDAQ: AMZN), and this example is the best-case scenario out there. More →

  • 02 Oct
    Iron Ore Stocks Are Hot, But Are They Really A Good Buy?

    Iron Ore Stocks Are Hot, But Are They Really A Good Buy?



    • Iron ore prices are relatively high, therefore, don’t expect earnings and dividend stability.
    • An analysis of mining costs shows the balance price for the metal. Trade iron ore miners around that balance price.
    • Vale’s mining costs per ton will go as low as $8.

    Introduction

    Iron ore miners currently being praised as stable companies with low valuations, high earnings, and dividends, has really taken me by surprise.

    But that’s how the market thinks. Short term, short term, short term, and a stock is a good buy only when it’s at multi-year highs because it’s the market performance that determines the quality, not the fundamentals. More →

  • 27 Sep
    Looking For Multi-Baggers? Here’s 3 Practical Ways To Double Your Money Now

    Looking For Multi-Baggers? Here’s 3 Practical Ways To Double Your Money Now

    • A mutli-bagger is a stock that doubles or more. These stocks are great to own, but not that easy to find. We’ll discuss the necessary mindset to take advantage of such opportunities.
    • Apart from the mindset, it’s also necessary to understand the environment and look to places where multi-baggers can be found.
    • The final decision comes down to how much of your portfolio should be allocated to such investments.

    Introduction

    There are different reasons why people invest.

    Some invest to protect their capital from inflation, others to build up a retirement nest egg, while others seek extraordinary returns. More →

  • 14 Sep
    We Could See Gold At $20,000. No, I’m Not Crazy.

    We Could See Gold At $20,000. No, I’m Not Crazy.

    • It might sound crazy, but gold at $20,000 is a highly probable scenario.
    • However, gold at $600 is also a probable scenario in the short term.
    • I’ll discuss how to position your portfolio to take advantage of scenario 1 and not lose much in scenario 2.

    Introduction

    I’ve already written about how gold should be an essential, but small part of each portfolio. My theory is that by putting a few percentages of your portfolio into gold miners, you hedge yourself against anything that might happen while you don’t risk much as all you can lose are those few percentage points. More →

  • 08 Sep
    Why You Should Be Paying Attention To Bond Yields

    Why You Should Be Paying Attention To Bond Yields

    • It’s extremely important to watch bond yields as they define the health of the economy and financial markets.
    • I was correct last year when I said to short bonds, but now things are changing and shorting bonds is no longer a low risk thing to do.
    • I’ll discuss what to look for to protect your portfolio from what bond yields are saying.

    Introduction

    Last year, I was a bond bear and wrote about how investors should avoid bonds, especially as the FED was announcing a tightening policy. I was right on with my forecasts as bond yields have almost doubled since June 2016 which lowered bond values. More →

  • 31 Aug
    How Things Have Quickly Changed On The Outlook For Copper

    How Things Have Quickly Changed On The Outlook For Copper

    • Everyone was negative on copper just a year ago. Today, most are positive.
    • There are two factors that help determine whether there will be a future turnaround or not for a commodity.
    • The nice thing is that all the data is easily accessible with a bit of research and a long term view.

    Introduction

    I’ve been writing about the imminent supply gap in copper for about a year and a half now. However, when I first came out with this thesis, the copper environment was extremely negative.

    The following headlines are an example of just some of the negativity surrounding copper in the last three years. More →

  • 24 Aug
    Gold Miners Vs. Gold Steaming Companies – There’s A Clear Winner When It Comes To The Better Investment Now

    Gold Miners Vs. Gold Steaming Companies – There’s A Clear Winner When It Comes To The Better Investment Now

    • I’ll compare current operating assets, future potential assets, valuations, costs, and cash flows for Barrick Gold and gold streaming company Franco Nevada.
    • Gold royalty companies have a lean business model and the appeal of constant positive cash flows, no matter the price of gold, is on their side.
    • Gold miners have a history that’s better to forget after terrible investments were made in 2012 when gold prices were high, but are you investing in the past or for the future?

    Introduction

    Two days ago, I described gold royalty, or streaming, companies and how they have outperformed gold and gold miners in the past.

    Today, I want to compare the largest gold royalty company, Franco Nevada Corporation (NYSE: FNV), with the largest gold miner, Barrick Gold Corporation (NYSE: ABX), to determine which is a better investment at this point in time, a gold miner or a gold royalty company. More →

  • 23 Aug
    The Practical Approach To Constructing An All-Weather Portfolio

    The Practical Approach To Constructing An All-Weather Portfolio

    • Creating an all-weather portfolio is pretty technical. Today, I’ll try to make it as practical as possible and give actual investment examples of where to invest.
    • It’s all about risk. Counter to general knowledge, bonds carry large risks at the moment.
    • I’ll describe 4 different investments that will behave differently in 4 different economic scenarios, but all of them offer a yield all the time.

    Introduction

    Two months ago, I wrote a pretty detailed technical article on how to build an all-weather portfolio. The results were quite discouraging as a huge part of the portfolio would have ended up in short term bonds, especially treasuries.

    In today’s article, I want to deviate a bit from the pure technical side and approach the creation of an all-weather portfolio from a practical side that includes actual stocks to buy and doesn’t put as much in treasuries. More →

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