The commodities boom that occurred in the late 90s and much of the 2000s may be over, but PIMCO thinks that commodities are still a very worthwhile investment going forward. “While we agree that future price appreciation won’t likely mirror the commodity ‘supercycle’ of double-digit annual growth from the late 1990s until the 2008 financial crisis, we do not believe this should necessarily imply a negative view on commodity returns,” PIMCO’s Nicholas Johnson and Greg… Read More
Commodity prices are headed higher over the long term, Jeremy Grantham says, and investors would be wise to make sure they are exposed to them — though not through futures contracts. “Risks abound, as always, in commodity investing. Despite them, Grantham advises, you should start getting in, ‘but keep a lot of dry powder,’” reports Forbes’ William Baldwin. “If there’s a crash, double up. If there’s no crash, add gradually to your positions over the… Read More
In her latest market commentary, Charles Schwab Chief Investment Strategist Liz Ann Sonders looks at the recent commodities decline, and at what it might mean for stocks. While stocks and commodities don’t always move in tandem, Sonders says, their correlation has been high since late 2008, when the “risk-off, risk-on” trade started. “It’s been our view that this elevated correlation was not to be long-lasting, and … the correlation has begun to ebb,” Sonders says.… Read More
GMO’s Jeremy Grantham says that the world is in the midst of a “paradigm shift”, one that involves a skyrocketing population and dwindling resources. And, if we don’t act soon, the shift will leave us in serious trouble. “Accelerated demand from developing countries, especially China, has caused an unprecedented shift in the price structure of resources: after 100 hundred years or more of price declines, they are now rising, and in the last 8 years… Read More
“Commodities King” Jim Rogers says commodities are a better place to be than stocks right now. Rogers says that, while stocks will rise or fall with the economy, commodities should do well whether the recovery continues or not. He’s particularly high on agricultural stocks, as well as gold and silver.
Marc Faber of the Gloom, Boom & Doom Report says he thinks global equities may be in a trading range in which stocks fall in October and November, before rising in the last part of the year. Faber also tells CNBC TV-18 why he currently favors agricultural commodities over industrial commodities. [youtube= http://www.youtube.com/watch?v=l7iyM_6T5yE]
Commodities guru Jim Rogers offers his take on the current state of the economy and stock market in an interview with BusinessWeek, saying that diversification is “a scam”, that the U.S. might be better off letting a couple big institutions fail now, and that commodities are the place to be — whether the world economy revives or not “Diversification,” Rogers says, “is something that stock brokers came up with to protect themselves, so they wouldn’t… Read More
While several prominent bears have turned bullish lately, there is by no means a consensus that we’re on the verge of a turnaround. Take Jim Rogers, the international investor and commodities guru who predicted the credit bubble crash two years ago. Rogers tells Fortune in its 2009 investment preview that “this may turn into the Great Depression II“. Rogers says that the lack of financing options for commodities firms means that commodity supplies are shrinking by… Read More