“The Mega Commodity Move: Why It’s Happening” and a Look at Our Portfolio
Mar 30th, 2008 by Erv
Sometime others can say things better than I could ever express them. The title of this post is taken from a post on another site where the Arden sisters, who are internationally know as some of the most accurate precious metals forecasters around, wrote a post with the same title. It expresses some powerful views that I agree with. Please click here to read it.
This blog was quiet all week. I tend not to post if I have nothing to say. This coming week, however, I plan to start filling in our portfolio. It appears I was early predicting the next up-leg of the uranium market. A significant rise in uranium prices is inevitable, but not in the immediate future, so I will be concentrating on precious metals and agricultural commodities, using Electronically Traded Funds (ETFs). ETFs are baskets of stocks in a given industry, somewhat like sector mutual funds, but they are traded like stocks on the regular stock exchanges. There are ETFs for virtually any industry or commodity sector you can think of.
Some ETFs are leveraged, allowing them to rise (and fall) faster (usually a multiple of 1.5 to 2.5, see each individual ETF’s prospective to learn more) than an index of the same components that make up the ETF. Some are bear market ETFs that go up when the market they represent gos down allowing, in essence, short selling in a non-margin account like an Individual Retirement Account (IRA).
Our current portfolio went up this past week. Now we need to add more stocks using the same trading rules. That will happen over the next few weeks. Our focus will be precious metals and agricultural commodities, but some uranium and energy stocks will be looked at too.
