It is obvious we are in an inflationary period. All one has to do is go to the supermarket or grocery store to see that. A certain mindset needs to be put in place to take the despair out of the situation. During times like these, some of the greatest profits can be generated. One current theme is managed futures. This field is fraught with risk and volatility. But there are some CTAs and money managers that understand risk. I would suggest this route as opposed to simply buying a commodity ETF. The commodity ETF mimics the indices, and there is no guarantee that the indices will continue to go up or, more importantly, will avoid sharp down turns.
One needs to make oneself available for opportunities...
For the past six months or more, the world wheat market has been steadily pushing prices up, as supplies are at historic lows, and demand continues to grow. Several large producing nations had bad crops two years in a row, and new wealth in places such as China and India, combined with the weakness of the U.S. dollar, which makes American wheat a better buy worldwide, have all contributed to the unslaked demand.
The record prices in many commodities have attracted big-money investors, including hedge funds, especially in light of a stock market that is more down than up, and a real estate market in severe correction from record highs the past three years. Most elevators in northeast North Dakota and northwest Minnesota posted prices of $16.70 to $17.30 Friday, according to an Agweek survey; that's four times as high as a year ago and the highest figures ever seen. The food price inflation rate more than doubled last year, to a 17-year-high of 4.8 percent and some experts think it will almost double again this year.
Wouldn't it stand to reason there is some opportunity to profit? Make yourself available for opportunities and protect your capital.