  |
|
Investing in Commodities Editor’s Note: Today, commodities expert Kevin Kerr is here to share with you an insightful view on today’s current commodities dilemma and its meaning for future investors. Enjoy… A Grainy Picture
Five years ago, almost no one believed that oil prices would soar past $30 per barrel. $50 seemed utterly unthinkable. As oil prices continued climbing, so did disbelief. The skeptics never abandoned their misguided notion that oil was “overpriced.” So when crude retreated from $75 to $50 early last year, the prospect of $100 oil seemed like a ridiculous prediction Due of Peak Oil, the prices of agricultural commodities are going much higher… Most of the agricultural markets have had a big move already, but these markets could easily suffer a big correction from current levels. The long-term investor will want to buy these markets on weakness, not sell them. *********************************** 627% Profit in Four Years and Rising! The New York Times and USA Today called it a “bonanza” for everyone involved… There’s an energy revolution about to reemerge and impact the entire nation…and it’s neither oil nor ethanol… You’ll be surprised what this revolution is… Click here to read more… *********************************** A hundred years ago, the average American spent about 45% of annual income on food. Today, that figure is down to about 15%. So we’ve been taking cheap food for granted and have spent our “extra” cash on plasma TVs and leased BMWs. We don’t worry about food costs or whether it will be readily available tomorrow. But the agricultural markets may have some major surprises in store for complacent Americans…and unprepared investors:
While shortages of key industrial and energy commodities are frightening, no sector will threaten global stability more than agriculture… In 2007, we saw stark glimpses of just how bad this situation will get. The “Tortilla Crisis” in Mexico, the “Pasta Protest” in Italy, the riots and crushing of one supermarket shopper in China over cooking oil… We have seen dairy, meat, and bread prices skyrocket. It’s ironic that as global population is reaching an all-time high, we are turning a huge percentage of our crops into ethanol or biofuel… This questionable, if not idiotic, alternative produces little, if any, short-term benefit and considerable long-term harm — both to the quality of farmland and to the integrity and stability of the global agriculture markets. In other words, using food as fuel can make a big mess out of the global food supply…and the prices that we all pay for that supply. *********************************** The Greatest Hoax in 30 Years… This will have worse effects on the U.S. economy than 9/11…and it’s only a hoax… The U.S. has been lied to for decades and the government is just now figuring it out…and there hasn’t been a public announcement because it will cause hiatus on Wall Street… We know the hoax and how you can make killer profits off of it… To find out what Bush was informed behind closed doors and how to make a fortune from it… Click here for more info… *********************************** From sea to shining sea, the U.S. has croplands as far as the eye can see. For years, its bounty has been a supermarket for the world. Now it’s a fuel station, too. China, which has hundreds of millions more hungry mouths than we have, has far less arable farmland. And worse, China has far fewer controls in place to regulate farming methods. Trends like these strongly suggest that the agricultural markets will imitate the price action of the energy markets. As investors, we must look at this situation as an opportunity… We should be looking to buy stocks of some of the key agricultural companies that help support the industry: those dealing with equipment makers, fertilizer, irrigation, and transport. In my own portfolios, I have exposure to soybeans, wheat, and corn. I also think the soft commodities are much undervalued: coffee, cocoa, sugar, and cotton. These markets are also poised to move much higher… The planet is not running out of food, but it might be running out of cheap food. So stock up your pantry and start shopping for the kinds of investments that will prosper during the coming agriculture boom. Regards, P.S.: Agriculture is a profitable market and safe bet for several years…but there’s another market out there that’s a lot more lucrative, a lot less obvious. We’ll give you a sneak peak to find out how to make easy millions. To find out what his hot market it… Click here… |
|
|
With 15 years of experience, Kevin Kerr is a true veteran of the commodities markets. At age 20, Kevin became one of the youngest members in the history of the New York Finex Exchange. From the Finex Exchange, Kevin became a full seat member of the New York Board of Trade. A licensed commodities trader since 1989, he's worked the trading pits in Chicago and New York with legends like Paul Tudor Jones, and he's even traded commodity derivatives in London. Over his career he's dealt with everything from cotton to currencies to oil and natural gas. Kevin is the editor of Resource Trader Alert, and the co-editor of Outstanding Investments. |
|
