Tag: commodity stocks

What are Commodity Stocks?

Commodity stocks include raw materials, like oil, copper, tin and aluminum, as well as agricultural products, such as cocoa, coffee and sugar.

Commodity stocks include raw materials, like oil, copper, tin and aluminum, as well as agricultural products, such as cocoa, coffee and sugar. Most, if not all, non-professionals who get directly involved in trading commodity investments wind up losing money. That’s why Pat McKeough believes the best way to invest in, and profit from, commodities is by purchasing commodity stocks. Commodity stocks are shares of well-established companies that will benefit from a rise in commodity prices.

The prices of several agricultural commodities continue to strengthen. For example, wheat prices are moving higher on continued dry weather in the U.S. Meanwhile, heavy rains are hurting wheat production in Germany. 

One of the main reasons why prices of many agricultural commodities are rising is that consumers in developing countries are eating more and higher quality food. As they grow wealthier, developing-world consumers also buy more processed foods. Like meat production, making processed foods calls for crop-consuming livestock, as well as increased dairy production.

When researching commodity stocks, or any other type of investments, TSI Network recommends using our three-part Successful Investor philosophy:

  1. Invest mainly in well-established companies;
  2. Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; the Consumer sector; Finance; Utilities);
  3. Downplay or avoid stocks in the broker/media limelight.

Our free report reveals how you can increase your profits — and cut your risk — in commodity investments. Download Commodity Investments: Fertilizer Stocks and Potash Stocks That Will Profit from Rising Food Demand today.

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Closer look at four of our recommendations

December 7, 2023||ETFs

Here’s a look at some of the factors that make the three ETFs we see as buys on pages 3 and 4 attractive—and why we don’t like the fourth.
Healthy profits in healthcare equipment
With the onset of the COVID-19 pandemic, healthcare equipment providers were hurt as… Read More

Commodities offer rewards as well as risks

February 9, 2023||ETFs

Commodities are the raw materials that production and manufacturing rely on. Investing in them can help investors diversify their portfolios and win greater protection from inflation. However, commodities as a group can be both cyclical and volatile, and investors might rightly question the wisdom of… Read More

Small-cap stocks come with additional risks

July 15, 2021||ETFs

Smaller companies can generate higher returns than their larger counterparts, but they are often riskier and less liquid, and may underperform for long periods.
Small stocks are also more volatile in times of unsettled or falling markets.
Still, if you focus on the best-quality small companies—or ETFs… Read More