This is a short follow up post from my previous one on 'An investment strategy from the greatest', basically to identify and share with the readers on which country, industry or even sector that is now facing the maximum pessimism in sentiment.
With the Dow Jones hitting all time high, it is hard to convince people to invest in areas where there is maximum pessimism. However, Sir John Templeton has shown to us that this has given him maximum profit, one just have to be patient enough.
Commodities - I am sure most of us are familiar with this, and many people associate this to gold and silver. There is actually others such as sugar, cotton, iron, ore, food, coal, etc. Commodities have been hit pretty bad and the sentiment is very bearish. Just yesterday, Credit Suisse has announced that it is exiting the commodities trading business. You can read the news here.
BRICS - Yes, BRICS again. I had written a post about Indonesia(which is one of the BRICS) some time ago. This time, I want to talk about Brazil, China and in particular Russia. Just not too long ago, there have many news article on the bearish economy sentiment in Brazil and China, due to the reduce in demand from commodities and possibly of real-estate bubble in the Chinese economy. Then now there is Russia, She has been in the news of late for the wrong reason. There has been allegations that Russia has a part to play in the crash of MH17. Due to this unfortunate incident, there has been call for further sanctions against Russia and it's stock market has reacted negatively.
So there you go, these are the gloomy spots in the bright all time high Dow Jones. Question is what, how and when to invest in these?
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2 comments:
Hi Oldman,
I think some of the soft commodities are looking very good (meaning recently very bad) - specifically Soybeans and Corn. How would you recommend getting exposure to commodities? Also, do you think a diversified approach for commodities would work or would it be better to target specific commodities or groups?
BRICS have had recent strength too, so maybe this is the start of their turnaround? I also would like to ask how you would recommend getting exposure to these different geographies.
MH
Hi mh, I am not into these grp of commodities, more into gold and silver. I am not allow to make recommendation but my personal preference would be through etf. Similarly for countries, etf is a good way to get exposure to. Yes, brazil India china has strengthen for different reasons.
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