While many believe that we’re in the midst of an atypical market environment, that doesn’t mean there aren’t opportunities with exchange traded funds (ETFs) to be had. In fact, some have been taking an interest in commodities in particular.
Could we be in a trough until the next bull market cycle? That’s what Jim Lowell for the MoneyShow feels. And if the improving macro trends hold up, the markets are primed for a longer-term up swing.
The latest five-month rally is setting the stage for a track back to growth, especially in China, and possibly in the United States. This puts commodities and the stocks in the companies that mine, transport, process, and sell them, in a growth position, with more room to run, Lowell says.
The bottom line is that commodities from steel to corn are already low in supply, and if a return to growth continues, the demand will outstrip the supply, possibly creating a price premium.
The projected growth of emerging market consumers, and the re-emergent growth of United States and possibly European consumers, all the world is a commodity stage. There are several ways to play the potential growth of commodities with ETFs, with both broad and narrowly focused ETFs.