Right now at the end of 2016, with a trump presidency looming, everyone is looking for a safer type of investment. With commodities starting to do well again, investors are looking for some sort of edge to start to strengthen their portfolios going into 2017.
With all the drama of the presidential elections a month ago, and with TRUMP who is now evidentially the new president in a few months, one commodity might gain huge benefits starting as soon as February or March in 2017.
If you are unaware, commodities have been on fire this year, Copper, gold, palladium and also crude have surged quite nicely. One larger fund is up almost 288% in one of their funds, and their clients are laughing all the way to the bank. But how can you also make some good profits from 2017, and where are some of the smart investors putting their money leading up to Christmas.
Well, as metals and some other commodities surge, it might be a bit late to jump in and expect a violent bull run. Those may run out of steam soon, and as an investor you never want to buy high. Commodities like wheat and corn have been dragged through the mud lately and these could offer some very good opportunities in the next several months.
What you must realise is the gap with industrial commodities and agricultural commodities is that this follows a secret trend. Meaning, if you go back all the way to 1981 if metals rally, and soft commodities do not, usually several months later the agricultural and violent comeback. Which means they have to play catch. Does this mean we will see a huge rally in soft commodities in the coming weeks. No, but if you use historical data 9 times out of time, they always rally after the metals and post huge gains.
Right now some of these commodities are suppressed, but it’s also important to note that there is smart money flooding into these at the same time. That might be another reason to start looking at these commodities as well.
With a special mention to one commodity in particular. Wheat, which is currently down a whopping 13 percent this year, and it has really been struggling since hitting a year to date high back in June 2016.
Usually the smarter investors are not gambling on the commodities in hot demand. Think of them sitting under a tree and hunting for the commodities which still represent strength but have been suppressed without a suffice reasoning. Some of the smart investors can see that the food and agriculture commodities definitely come under that bracket at the end of 2016. And astute investors are very much looking to allocate funds to these vehicles.
Sometimes the philosophy to making good money in the stock market and in commodities is to invest in the road less travelled rather than the flavour of the month. Buying low and selling higher is the main aim of the game and the soft food commodities is where the action might be in 2017.