A Boom is Setting Up in Commodities

A Boom is Setting Up in Commodities

#commodities

$WEAT $CORN $SOY $CU $JPM $DBA $MOO $REMX $JJC $CPER

These are the developments we are seeing in the commodities sector over the last few months, as follows:

  • JPMorgan Chase (NYSE:JPM) in a note to clients is recommending a move away from bonds toward materials
  • Hedge fund bets at their highest marks in 10 yrs totaling roughly $120-B YTD
  • Agricultural grains markets up more than 30% in the last 10 yrs
  • Corn at a 7-yr high
  • Soybean and Wheat at their highest prices since Y 2014
  • Copper has the potential to rally 20% to more than $10,000/tonne, according to the head of global commodities research at Bank of America

Here are some places to place your bets if you are itching to join the professionals, as follows:

  • Invesco DB Agriculture Fund (NYSE:DBA) is one of the largest ETFs that holds actual agricultural commodities. Its 26-wk return rate stands at 20.79%, according to ETF Database. Its share price is up 20.79% over the past 6 months and closed last week at 16.56.
  • For an ETF that holds agricultural stocks, the largest is VanEck Vectors Agribusiness ETF (NYSE:MOO) has a 26-wk return rate of 31.32%, according to ETF Database. It is up 29.89% over the past 6 months and closed last week at 82.14.
  • The VanEck Vectors Rare Earth/Strategic Metals ETF (NYSE:REMX) holds stocks of companies that produce rare earth metals such as titanium, molybdenum, cerium, manganese and tungsten. The ETF’s 26-wk return rate is 89.57%, and its share price closed last week at 72.38, up 87.90% over 6 months.
  • For pure Copper plays, also look into the Barclays iPath Bloomberg Copper Subindex (NYSEARCA:JJC), which is an exchange-traded note, and the United States Copper Index Fund (NYSE:CPER), an exchange-traded product.

Have a healthy day, Keep the Faith!

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Paul Ebeling

Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.