Top 5 Commodity Picks for This Year

The trading profits that can be earned over the next several years in the futures markets, specificially commodities is unimaginable. You do not want to regret missing out on this upcoming market opportunity. We are in the process entering the second wave of the continuation of the major uptrend in commodities in the last thirty years. Pretty much everything has made gains, settled back down a bit, and is now picking up momentum back to the upside. If history repeats itself, prices of almost every commodity will likely take off to new all-time highs over the next 24-36 months. To give you an idea of what I think is in store, take a look at my top five picks for 2007:

1 - Gold
Buy! I think that for at least the next few years, the floor of gold prices will remain near $550. Even though it topped out at more than $600 per ounce, the gold market later survived a correction, pulling back about 50% to between $625 and $525. When I wrote this article, the price had inched back up to $630. My forecast: gold will beat out its record high to hit more than $1,000 per ounce. Because gold prices beat those of silver, I recommend gold over the latter. It would shock me if gold plummets below $500 any time soon, but I can certainly picture it elevating to over $2,000 per ounce in the next year and a half.

2 - Cotton
To date, cotton has been the runt of the litter in the futures bull market. When it does gain pace with the rest of the market, I forecast that it will take hold right away. Cotton prices are now bobbing around $0.50, even with China and India encouraging exports and because the South hasn't recuperated from Hurricane Katrina's wake. Given that, I think cotton prices will double in the next two years.

3 - Wheat
Among the grains, wheat has revealed singular determination almost since the beginning of the current bull market. Even on days when USDA reports knocked down soybeans and corn, wheat was determined to forge ahead. My long-term price target on wheat is $8-$10.

4 - Cocoa
Cocoa has been a bit like the gold market--that is, it spent several years going hardly anywhere at all, and definitely not higher. Then, in the initial phase of the current bull market, it ran all the way up to the mid-20s in price. Since then, it has backtracked down the to the $14-$15 level, and has recently shown signs of bottoming out and recovering. Look for cocoa, like nearly all other commodities, to shoot back up, setting new all-time highs during this second stretch of the bull market. If you missed the run-up the first time, don't get caught standing on the sidelines again. Buy cocoa.

5 - The CRB Index
Want to do things the easy way? Then just invest in the CRB Index, and ride the wave of the entire market. This is the biggest bull market in commodities in history. Just as you could have struck rick in the 1980s and 1990s simply by buying the Dow Jones or S&P Index (as opposed to trying to pick individual stocks), you can take gains from the total market momentum in commodity futures simply by buying the CRB Index, and save yourself the trouble of trying to figure out which specific market is the best investment return at any given moment along the way. All markets will, of course, have their ups and downs, but overall market momentum should keep trending up. We're in a bull market, plain and simple.

The chance to win big in the commodity markets over the next 5 years is the single best investment opportunity that I have ever seen. I do not expect to see another one like it within the next 50 years. Do not miss out on this chance to create a fortune that could take all your financial worries away, in the investment horizon of just a few years.

Article Source: http://www.diyarticlelibrary.com

Halston Adams worked as futures broker until he stumbled onto his recipe for generating enviable returns from successful traders he befriended. Find out more about his trading approach at: futures trading today.

Please Rate this Article

5 out of 54 out of 53 out of 52 out of 51 out of 5 

Not yet Rated