Today on Power Lunch Jim Rogers said "you can't be a good investor if you don't understand commodities." He used an example of AT&T and copper. While I'm not sure about the totality of what I think Jim was implying I am on board with the idea and I think that has played a role in the way I look for themes and invest.
I have written countless times about oil in this regard. Brazil is interesting because of the commodities it supplies to various other countries. Nickel and copper stocks are interesting as are stocks like Bunge (BG) and Corn Products (CPO). Soy and corn. By the way CPO also got a mention from Jim Jubak today.
Where I think some understanding of commodities is important is trying to learn how supply and demand for these commodities can effect stock markets. I believe the recent increase in demand (real or perceived) for commodities has been very important in the strength of stock markets and currencies in certain countries.
I am inclined to think this trend will continue for a few more years. Long time readers know I have portfolios tilted this way but not in any kind of extreme bet.
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2 comments:
Really good article on Rodgers in the 12/27 Fortune...was Rodgers inferring to some relationship b/w T and copper?
I'm sorry I missed that interview. I plan on reading Jim's book over the next couple of weeks. I have much to learn about commodities.
Brazil has been doing very well. I've had EWZ in my IRA for several months now. I appreciate you highlighting all these ETFs. You've got me thinking of adding a few more to my IRA.
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