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July 31, 2015
Successful ETF Investing

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July 31, 2015
Weekly ETF Report

The Caution of Commodities One of the most startling charts I’ve seen in a long time is the DB Commodities Tracking Index Fund (DBC). This is the widely followed benchmark index of the commodities space, and it includes the metals, grains, oil, soybeans and sugar. The broad-based nature of DBC means it’s a great way to get a handle on global commodity prices. It’s also a great way to see what global demand looks like. As you can see, the chart here of DBC looks downright ugly, with the fund now falling to all-time lows. The current price of DBC is way below its 50- and 200-day moving averages, and the route in the sector has actually picked up a lot of steam just since July. DBC is down nearly 38% during the past 12 months, and there is no doubt that this fund is in a confirmed bear market. So, why are commodities plunging so much? The main reason is global demand, which can be translated to a lack of global growth. While some pockets of the world are seeing economic good times, major commodity consumers such as China are struggling to keep up the pace of growth. Add to this mix a distinct oversupply of crude oil, or a “global oil glut” as many are calling it, and you get a distinct sense of discomfort about where the economy is headed. Given this current situation, we are seeing many commodity-related pressures on global equity markets, particularly in the emerging […]

July 27, 2015
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July 27, 2015
Successful ETF Investing

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What's Going on with Commodities?

July 31, 2015

The Caution of Commodities One of the most startling charts I’ve seen in a long time is the DB Commodities Tracking Index Fund (DBC). This is the widely followed benchmark index of the commodities space, and it includes the metals, grains, oil, soybeans and sugar. The broad-based nature of DBC means it’s a great way to get a handle on global commodity prices. It’s also a great way to see what global demand looks like. As you can see, the chart here of DBC looks downright ugly, with the fund now falling to all-time lows. The current price of DBC is way below its 50- and 200-day moving averages, and the route in the sector has actually picked up a lot of steam just since July. DBC is down nearly 38% during the past 12 months, and there is no doubt that this fund is in a confirmed bear market. So, why are commodities plunging so much? The main reason is global demand, which can be translated to a lack of global growth. While some pockets of the world are seeing economic good times, major commodity consumers such as China are struggling to keep up the pace of growth. Add to this mix a distinct oversupply of crude oil,...

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Investors have become complacent. Stocks are near all-time highs. Volatility is low. It's almost like investors are blind to the three coming catastrophes that can crash the market 30% or more in 2013:...
Current Recommendations
Fund Allocation
abc
25%
def
25%
ghi
25%
jkl
25%
Name Ticker Date Buy Price Stop Price
number 1 abc 08/30/2009 19.74 17.74
number 2 def 10/13/2009 19.72 17.72
number 3 ghi 05/15/2009 19.35 17.35
number 4 jkl 03/30/2009 20.08 17.08