When it comes to investing, whether it’s exchange traded funds (ETFs), stocks or something else entirely, it’s not pretty out there.
One of the biggest culprits has been commodities, and a problem of both real and overstated demand, says Gary Gordon for ETF Expert.
Commodities and resources are the latest victims and prices for these are falling like crazy.
Not only are ETFs that hold futures for various commodities getting socked, but the companies that support the actual commodities are taking a hit as well, with funds such as the Market Vectors Steel (SLX) down 16.8% for the last two weeks, dropping a total of 72.8% for the last six months.
S&P Metals And Mining (XME) has lost strength and is down 15.9% in two weeks, and down 66.9% for the past six months. So what is an investor to do?
For the time being, commodities are not a good idea, but for the long haul, they are desirable in any portfolio. While economies suffer, the world’s population growth isn’t going to slow. Once things turn around and money flows more freely through the marketplace, demand for many commodities could resume.
Until then, we’re sticking to our strategy of staying on the sidelines until the trends turn positive once again.