A Boom is Setting Up in Commodities



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!