How to Invest in Commodities Right Now
Commodities have been hot as the global economy reopens. Which should you be focused on?
- (0:45) - Understanding How To Invest In Commodities
- (4:30) - Breaking Down The Current Natural Gas And Coffee Market
- (8:40) - Should Investors Be Buying Into Copper or Gold?
- (14:50) - 2021 Agriculture Market: What Should Investors Be Paying Attention To?
- (20:00) - What Commodities Should Investors Stay Bullish On?
- (25:25) - Episode Roundup: UNG, BOIL, KOLD, FCX, FCC, BHP, DBB, GLD, SLV, KMTUY, DE, AGCO, JO
Welcome to Episode #284 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week she’s joined by Jeremy Mullin, Zacks Stock Strategist and the editor of the Commodity Innovator newsletter, to discuss what is happening in the volatile commodity markets.
What was hot to start the year, like lumber, no longer is. Lumber prices are now in the red for the year.
But natural gas is up 75% year-to-date and coffee is up 55%.
Even crude is holding onto its big 2021 rally.
But what is happening with gold and silver as inflation fears remain elevated?
Natural Gas, Copper and Aluminum are Red Hot
If you want to invest in the red-hot natural gas market, which Jeremy calls very volatile right now, one way is the ProShares Ultra Bloomberg Natural Gas BOIL.
It’s up 136% year-to-date.
Copper is near 10-year highs as the economy reopens.
Aluminum is also at a 10-year high.
Gold and Agriculture
What about gold as an inflation play?
Investors can buy gold through the SPDR Gold Shares ETF GLD but it’s down about 5% year-to-date even with the inflation worries.
Agriculture is another hot commodity area.
You can buy wheat, soybeans and corn, or you can buy those involved in the industry, like equipment manufacturer Komatsu KMTUY, which is trading with a forward P/E of just 14.
What else should you know about commodities right now?
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
FreeportMcMoRan Inc. (FCX): Free Stock Analysis Report
Komatsu Ltd. (KMTUY): Free Stock Analysis Report
SPDR Gold Shares (GLD): ETF Research Reports
Invesco DB Base Metals ETF (DBB): ETF Research Reports
ProShares Ultra Bloomberg Natural Gas (BOIL): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research