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Commodities Investing: Stay the Course
Pinnacle Digest writes: Frank Holmes argues for commodities being the most integral part of an investor’s portfolio for the short and long term. Goldman Sachs is anticipating a 29% return for the S&P GSCI Enhanced Commodity Index over the next 12 months. Goldman has told its investors they should increase positions in commodity based assets.
Holmes breaks down specifically why he believes commodities are set to rise in value this year. Prices have been driven down below fair value. China and the US have been delivering improved economic data. Policy makers from Australia to Brazil are taking accommodative action by lowering interest rates.
The advantage of gaining a return while your equities grow is one US Global Investors believe strongly in. Dividend paying stocks are evaluated along with trends involving Fund Managers being under or overweight commodities.
Frank closes by urging, "investors to stay the commodities course, recognize the difference between what’s in the windshield and the rear view mirror, and keep an eye on the road for unexpected obstacles."
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