Fox Business News: Investing in the Commodities Marketplace
There is likely no more volatile sector in the investment arena than commodities, especially with regard to speculation. One of the most notable aspects of the current market environment is the significant rise in commodity shares. Gold has reached an all time high and even the “poor man’s gold" - that is to say, silver - is riding high as well. But commodities also include grain and petroleum and the speculators are out in full force across this segment of the commodities marketplace. What’s going on and is there just as likely to be a pull back or correction, will the bears come back to take profits?
During a week when oil prices were significantly over $100 per barrel and gas pump prices were approaching $4.00 nationally, Tim Speiss guest hosted a Fox Business News discussion on the action in commodities and the underlying fundamentals. He noted in his remarks that fundamentals like cash flow from blue chips continue to instill market confidence and send closing prices higher; a point that was reiterated when the discussion turned to speculation. The consensus was the speculators, who are chasing grain and other food stocks higher, are actually reflecting market reality. Tim agreed saying that even through the market is trending up, there is still uncertainty in the equities market (as shown by market price volatility) and that investor behavior in hedging with commodities is to be expected.
To view the video on Investing in the Commodities Marketplace click here.