2014 Profits! Why You Need Commodities In Your Portfolio
Let’s face it…
2013 wasn’t exactly a stellar year for commodities.
Gold fell 28% – the worst annual performance for the metal since 1981. Silver performed even worse with a yearly loss of 35%. And let’s not forget about corn, which recorded a stunning drop of 39.6%.
While those are easily the most dramatic losses of the year, other commodities didn’t fare much better. Copper crumbled 6.9%… Platinum puked 11.3%… Sugar sank nearly 15%.
And look at this…
Overall commodity weakness is confirmed in this chart of the CRB index. As you can see, an equally weighted commodity portfolio ended 2013 with a loss of just over 5%.
What caused these decidedly rotten returns?
Federal Reserve tapering fears, along with general uncertainty over global economic growth, had investors dumping commodities in favor of high-flying stocks. What’s more, questions concerning the Chinese economy (which is the main driver of global commodity consumption) had investors leery of hard assets.
But folks, commodities are ready to make an abrupt change in direction…
You see, it’s becoming readily apparent the US economy is getting back on solid ground. US economic data is coming in remarkably strong. GDP trends, manufacturing data, employment reports- they all point to a strong economy in 2014.
And that’s not all…
Economic optimism is spreading to the UK, Europe, and China. Economic data from all these regions is coming in at the strongest levels in years.
What’s it all mean?
Quite simply, global growth is set for a big rebound in 2014 and beyond.
Lingering economic uncertainty created by the financial crisis of 2008, the European debt crisis, and the slowdown in China will give way to a new round of global prosperity.
But don’t just take my word for it- read what “Dr. Doom” has to say…
Famously bearish economist Nouriel Roubini is turning downright bullish on the global economy. In fact, he’s calling for advanced economies to grow at an annual pace of nearly 2%. What’s more, Mr. Roubini is calling for 5% average growth for emerging markets!
As you may know, Mr. Roubini is commonly referred to as “Dr. Doom” due to his renowned prowess for predicting financial market downturns. The fact that Dr. Doom is becoming resoundingly bullish speaks volumes for the global economy.
Folks, now’s the perfect time to take a very close look at commodities…
Because when the global economy strengthens, commodity demand rises…. and when consumption rises, asset prices follow.
That’s why I urge you to discover my flagship commodity research service, the Commodity ETF Alert.
Each month I give a detailed analysis of what commodity offers the best near- to medium-term profit potential. I also give a rundown of what’s happening in all the commodity complexes on a monthly basis. At $19.95 a quarter, the Commodity ETF Alert is without a doubt one of the best commodity investment research values available anywhere!
And remember…
As the name implies, we do all our investing with commodity ETFs. As a result, there’s none of the extraordinary risk involved with commodity futures contracts. All you need is a basic brokerage account and you’re ready to go!
So what are you waiting for?
Thanks to a quickly strengthening global economy, 2014 is shaping up to be the year investors rotate back into commodities in a big way.
And that means there’s outstanding profit potential in commodity ETFs!
Until Next Time,
Justin Bennett
Category: Commodities
