Wisdom Trading, a global futures brokerage service, is excited to share news with investors looking to place money in the raw commodity sector. Markets’ price actions the first half of 2018 suggest the raw commodity sector is now in a cyclical upturn.
Orange County, CA - Wisdom Trading, an Orange County based global futures brokerage service, is excited to share news with eager investors looking to place money in the raw commodity sector. Markets' price actions the first half of 2018 strongly suggest the raw commodity sector is now in a cyclical upturn that will likely last several years. The sector, which rarely sees cyclical ups and downs, has been trending higher since 2016 and has just hit a 3.5 year high. An examination of the Goldman Sachs Commodity Index (GSCI) weekly chart shows a solid price uptrend in place with gains in the index and commodity markets in general in the coming weeks and months. The GSCI is a culmination of raw commodity futures markets' prices combined into one composite index price (crude oil, metals, grains, foods).
"Raw commodity sector is in the early stages of longer-term cyclical upturn," states Jim Wyckoff, a seasoned stock market analyst. He adds, "I've covered commodity markets as a journalist and analyst, on a full-time basis, for 33 years. I've seen few cyclical ups and downs in the raw commodity sector during that time." Although some investors regard trading in commodities as risky, a well-planned commodity investment can be beneficial to your portfolio.
Commodities can diversify a portfolio. Commodity returns usually have low or negative correlations with the returns of other major asset classes. So often, when bonds and stocks fall, commodities rise. A diversified portfolio with a low correlation between its assets tends to have less volatile returns. Thus, investing in commodities ensures diversification and improves risk-adjusted returns. Commodities maintain their value and price even during high inflation. In this environment, investors can turn to hard assets such as gold and other precious metals.
Smart investors look to Wisdom Trading to help navigate the raw commodity market and steer them in the right direction for the best investment strategies.
For more information, please visit: https://www.wisdomtrading.com/
