Question posed by computerwiz56@rocketmail.com: If the US defaults, would commodities rise?
I’m considering investing in some commodities as we get closer to the August 2nd deadline. Anyway, if the US defaults or things continue to look grim as we approach August 2nd, would commodities rise in price?
The best answer:
Answer by John W The general consensus seems to be that the currency would devalue and hence commodities would rise but you shouldn’t just shift your entire portfolio into gold, wheat or pork bellies. It has always been and still is about proportioning your portfolio. If you have multiple mutual funds then review them for correlated risks, there’s no point in diversifying across mutual funds if they are all invested in the same stocks. The most important asset categories to allocate across is bonds and stocks, they are negatively correlated particularly during extreme market movements such as a crash. Just as a mixture of antifreeze and water results in a lower freezing point than that of either liquids, a blend of 25% stocks and 75% bonds results in the lowest risk. Commodities are interesting in that they too can serve as a counterweight to equities much as bonds do but bonds still eek out a small return while the intrinsic value of commodities decay with time, you’re still better off with bonds over commodities as the relatively risk free portion of your portfolio. Of course, a little bit of each asset category is better than all one or the other so you may want to add a little bit of commodities to your portfolio but not at the expense of your equity portion.
And really, this isn’t the first time the debt ceiling has been raised, the most recent being February 2010, indeed the ceiling has been raised 76 times so far and often twice a year. As a percentage of the GDP, the debt has been much higher in the post WWII years. There’ll be a lot of political posturing as each party tries to wrangle concessions out of the other but the ceiling will be raised.
A question from denissalvatierra: Can someone please advise me how can I sell effectively to prospect buyers under commodity trading.?
I am a new Agent under these commodities:
1. Scrap metal –
a. Used Rails and HMS 1 (30K x 12; 60K x 12)
b. HMS 1&2 (30K x 12; 60K x 12)
2. Other commodities -
a. Crude Oil (Mazut 100, LPG and Gas oil D2 from Russia and Qatar with a reseller in Singapore)
b. Urea
c. Iron ore
d. Sugar
e. Cement, etc.
Top answer:
Answer by unni In commodity selling, the price is the most important factor. You just pitch on price, value for money and reliability. Stick to the basics and understand your customer well.
Question by moneymaker22k: WAT S THE BEST WAY TO TRADE IN INDIAN MARKETS? delivery ,f&o or commodity. how to play in f&o to earn MAX?
indian markets/investments
Top answer:
Answer by shoki If yoy want to earn from the Indian Market you have to become investor and not speculator. Continuesly make investment in the market with your savings and earn maximum. Dont go for F&O or in commodity market.
One of the many excellent videos I have discovered recently on the topic of commodity markets.
Interview with Akhilesh Kamkolkar from Orb Investments about current commodity markets and the risk in buying gold at present. They also discuss the fall in the Australian dollar overnight, and the important of diversifying into commodities, currencies and bonds. For more visit www.orbinvestments.com
A question asked by polymorphism: which major city in the USA trades commodities?
As far as I am aware, New York is stocks/bonds trading and Chicago is futures/options trading. Which city is known as the commodity trading city of the USA? Thanks.
