Our lives depend on
commodities yet most are too afraid to invest in them. Whereas growth stocks
and property are considered safe investments, the mere mention of the word
'commodities' creates tremendous fear amongst the public.
We are all totally dependent on commodities, full stop. Everybody needs food
and clothing to survive as well as energy to go about the business of
living. When raw materials are in great demand and supplies are extremely
tight, commodities make headlines all over the world as prices soar. Now, we
are witnessing another such time. The new bull-market is here, but it is not
in financial assets (stocks and shares); it is in commodities.
History is dotted with massive bull-markets in commodities, which occurred
regularly. In fact, over the past 200 years, we had five major booms in
natural resources. The shortest boom lasted 15 years, and the longest one
continued for 40 years. The current bull-market started in 2001 when
commodities (adjusted for inflation) were the cheapest they had ever been.
So, this bull-market is still an infant as far as commodity bull-markets go
with the potential to become the grand daddy of all bull-markets.