The Little Book of Commodity Investing

The Little Book of Commodity Investing is an indispensible guide to learning the ins and outs of commodity investing. It’s about identifying opportunities to profit from the coming bull market in commodities. It explains the benefits of commodities as part of a well diversified investment portfolio; covers all of the major commodities markets; what makes commodities and the companies that produce them tick; why commodities sometimes zig and then zag; what to buy and when to buy it; and why commodities are the next big thing.

Author’s Introduction:

There are many things that I enjoy about being a port­folio manager, but I most enjoy the times when I get to leave my spreadsheets behind and head out of the office to see the oil fields, mines, shipping terminals, and natu­ral gas plants that dot the landscape. The feeling is the same every time I venture beyond my computer screens: I always marvel at the size, scope, and technical complex­ity of these operations and at the critical, yet unheralded, role these assets provide in making the world work.

In spite of the crucial role commodity producers pla y in enabling the global economy, most of us know almost nothing about them; and what we do know is often jaundiced. In a world of glitzy new product launches and expensive marketing campaigns, the world of industry seems woefully out of date. Yet we have just lived through an era where Wall Street and its world-class marketers badly misled the investing public about the riches that lay ahead in cutting edge technology and high finance.

Commodities can soar when stocks and bonds are going nowhere and inflation is running amok. In a world of too much complexity and too few solutions, investors are looking for something simple, something tangible, where the accounting isn’t flawed and the path forward is clear. As real things that you can hold and touch, things that you use everyday, commodities seem to be the solid store of value in these troubled times. Best yet, armed with a knowledge of commodities you will be better able to understand markets, whole economies, and the world in which we live. More than an interesting niche area of investing, commodities provide us with an important window on the world of investing and understanding them transforms us into better inves­tors; not just better commodity investors, but better stock, bond, real estate, currency, and emerging market investors.

Most investment books are long on theory but short on practical no-nonsense information and knowledge from which you can profit. This book is different. This book is about companies, about whole industries, and about a value chain that spans the globe and intercon­nects the markets of tomorrow with the markets of today. This book explains the world around us—how it works, what makes markets rise and fall, and how you as investors can come out ahead of the pack.

The tried and true investment path led many investors to ruin in the 2008–2009 market collapse. What worked before is unlikely to work again. The world has changed and so too has investing. Commodities zig when stocks and bonds zag, and this often-overlooked but crucial part of the investing landscape is finally about to get its due. This book is your blueprint for navigating the world of commodities—the world of tomorrow. It examines whole industries, how they fit together in the bigger puz­zle, and what makes them tick. It explores the worlds of agriculture, mining, and energy, as well as the characters and countries behind the production and consumption of these critical raw materials. You’ll learn the various ways investors can get commodity exposure and why these bets are likely to be savvy rather than foolhardy.

Commodities are already part of your daily routine— from the coffee that powers you through your morning to the gas that f uels your car. And from the farmer’s field to the food on your table, the world of commodities is global and interlinked. Developments halfway round the world can have a big impact on the action in the trading pits of Chicago and on your portfolio. In short, commodi­ties are a vital linchpin connecting markets and providing powerful signals about the direction of the world economy and the stock market.

And yet, they just don’t figure as part of most invest­ment portfolios. This book will change that. It will dispel the myths about commodities and make two bold claims— that commodities belong in every portfolio and that you ignore commodities at your own investment peril. The goal of this book is simple—to sweep away the mys­tery surrounding commodities and expose them for what they are—the single best asset class for the next decade.

Contents:

• Calling on Commodities: Why Commodity Investing Is a Savvy Bet
• Gettin’ Goin’: Companies or Commodities?
• Gusher: Investing in Oil
• Drilling for Dollars: Profiting from Natural Gas
• Going for Gold: Prospering with Gold and Precious Metals
• Digging It: Making Metals and Mines Work for You
• Betting the Farm: Bingeing on Food Inflation
• Ordering the Breakfast Special: Finding Profits in Foodstuffs
• Gaining in Grains: Investing in Grains
• Bulk Up: Benefitting from Bulk Commodities
• Capitalizing on Commodities: Why Commodities Are Happening

The Little Book of Commodity Investing By John Stephenson pdf