Commodity prices are subject to wide and unpredictable swings. In the rising phase of the business cycle, when business is booming, resource demand expands faster than resource supply, so resource prices shoot up. This balloons profits for commodity investments. When the economy slumps, resource prices and commodity prices fall, and this drags down resource stock prices.
A crucial rule for commodity investing: if people generally believe the price of a commodity is sure to go up, the reverse often happens because both suppliers and users of the commodity also read the newspapers. They both take steps to protect themselves and profit from the situation. The suppliers try to increase supplies, and the users try to become more efficient or find alternative commodities.
We believe the best way to invest in, and profit from, commodities is by purchasing commodity stocks. The best commodity stocks are those of well-established and well-managed companies that will benefit from a rise in commodity prices.
Examples of commodity price movements you can benefit from includes stocks of producers of raw materials like copper, tin and aluminum, as well as agricultural products, such as corn, cocoa, coffee and sugar.
We think that most investors should have some exposure to resource and commodity investments in their portfolios, in reasonable amounts—say, up to around 20% of the total.
To build your overall portfolio, we recommend following TSI Network and using our three-part Successful Investor strategy:
Discover how to profit from the coming changes in the Canadian oil and gas industry, claim your FREE digital copy of Canadian Natural Resources Stock Guide: What to Look for in Canadian Energy Stocks now.
ISHARES GSCI COMMODITY DYNAMIC ROLL STRATEGY ETF $26.17 (New York symbol COMT) invests in a broad range of commodities. At the end of March 2023, the fund’s asset were effectively distributed to energy (57%), agriculture (19%), industrial metals (12%), and livestock (8%). The fund started up in October 2014,… Read More
Nutrien, formed by the merger of Agrium Inc. and Potash Corp, is set to see its earnings rebound this year on stronger prices and demand
Agrium Inc. completed its merger with Potash Corp in 2019. The new combined company, Nutrien, has benefited from higher commodity prices… Read More
A: Freeport-McMoRan Inc., $38.07, symbol FCX on New York (Shares outstanding: 1.4 billion; Market cap: $53.6 billion; Resources sector; TSINetwork Rating: Average; www.fcx.com), is one of the world’s largest publicly traded copper producers. As well, it also produces gold, molybdenum, and other commodities. The company… Read More
The improving outlook for cyclical commodity prices is prompting mining firms to order more equipment from Finning and Toromont. Both firms are also benefitting as governments spend more on infrastructure projects. Those higher orders will fuel their profits—and your dividends.
FINNING INTERNATIONAL INC. $35 is a.. Read More
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
Rising prices for corn, wheat and other crops are adding to the costs of these food and ingredient producers. However, the strong position of their leading brands let them pass along these extra costs to their customers. Even so, we feel Archer Daniels and Mondelez… Read More
Hunting for some of the most predictable stocks will have you looking at proven blue chips with dividends—and more. Learn what to buy now
Conservative investing is an investment strategy that focuses on lower-risk, predictable and stable businesses. Some of the most predictable stocks worth investing… Read More
FREEPORT-MCMORAN INC., $38.04, symbol FCX on New York, is one of the world’s largest publicly traded copper producers. The company owns mines in North America, South America, and Indonesia.
In late October 2022, Freeport-McMoRan reportedly entered discussions with Grupo Mexico SAB for the purchase of its… Read More
Teck is now shifting its focus to “low carbon metals,” such as copper and zinc. Under that plan, the company is selling its stake in an oil sands project. It could also spin off or sell its coal operations. These moves would help unlock more… Read More
The shares of these two heavy equipment suppliers have slumped recently as investors fear a recession would hurt their earnings growth. However, both firms now get most of their revenue from servicing equipment, which cuts their reliance on new equipment sales. Their strong balance sheets… Read More
Learn everything you need to know in 'The Canadian Guide on How to Invest in Stocks Successfully' FREE Special Report from The Successful Investor.
How to Invest In Stocks Guide: Find 10 factors that make your investments safer and stronger.
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We do not collect or disclose personal information, except when it is provided to us voluntarily by the site/store visitor with their consent.
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We are continuously in the process of improving our sites and services. If any new features or policies require a change to this current policy, we will post a clear notice of this change on pages of our site where the privacy policy appears. The principle behind this privacy policy is to collect information with your knowledge and consent.
What personal information do we collect?
The information we receive from customers helps us personalize and continually improve your online experience at TSI Network. TSI Network may collect personal information online for all legal purposes, which include, but are not limited to:
Information You Give Us: We receive and store any information you enter on our website or give us in any other way through sign-up forms or ordering forms for publications and services. You can choose not to provide certain information, but then you might not be able to take advantage of many of our services and features. We use the information that you provide for such purposes as responding to your requests, customizing your web browsing experience for you, improving our website, and communicating with you.
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We do reserve the right, however, to collect and perform statistical analyses of the internet traffic to our website for our internal use. However, information collected does not allow us to identify any individual, and will not collect any personal information of the visitor. Furthermore, we do not sell, rent or loan to any outside parties the information collected and analyzed.
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Does TSI Network Use the Information It Receives?
"Contact Us" and Comment Features: TSI Network encourages visitors to its websites to contact us with questions and comments. Email addresses and other information of persons using these features may be collected in order to facilitate our responses to those inquiries.
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Except as provided herein, TSI Network will not sell or rent personal information about you to unaffiliated third parties.
We may disclose personal information you have provided through our websites, for the above purposes, to persons or companies that we retain to carry out and other activities for which you have registered or in which you have otherwise asked to participate. In particular, we may for these purposes transfer information to any country (including the USA and other countries which may not offer the same level of data protection as Canada). We also will disclose personal information if required by law, including compliance with warrants, subpoenas or other legal processes.
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TSI Network does everything possible to prevent unauthorized intrusion to its websites and the alteration, acquisition or misuse of personal information by unauthorized persons. Notably passwords submitted by users of our websites are encrypted using encryption mechanisms. However, TSI Network cautions visitors to its websites that no network, including the Internet, is entirely secure. Accordingly, we cannot be responsible for loss, corruption or unauthorized acquisition of personal information provided to our websites, or for any damages resulting from such loss, corruption or unauthorized acquisition.
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What Choices Do I Have?
Changes to this Policy
This Policy is the sole authorized statement of TSI Network's practices with respect to the collection of personal information through TSI Network's websites and the subsequent use and disclosure of such information. Any summaries of this Policy generated by third party software or otherwise (for example, in connection with the "Platform for Privacy Preferences" or "P3P") shall have no legal effect, are in no way binding upon TSI Network, shall not be relied upon in substitute for this Policy, and neither supersede nor modify this Policy.
TSI Network may revise this Policy from time to time.
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