- (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
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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.
Investors can buy a copper miner like
Freeport McMoran
FCX
or they can buy the
Invesco Base Metals Fund
DBB
which owns both copper and sizzling hot aluminum.
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
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