Stocks have been taking a beating and the dreaded “correction” has been tossed around a lot. There is one group of assets however that are squarely in the middle of their own bull market - metals. Sure, gold and silver grab all the headlines, but industrial metals can make for some great investment plays too.
Jonathan Hoenig of CapitalistPig.com weighed in on Breakout.
“Even in the first quarter of 2014 a lot of the commodities in general have been in legitimate bull markets,” he says before listing the likes of tin, nickel, zinc, copper, and lead as potential boons.
“Although they seem esoteric and out there,” Hoenig admits,”thanks to today’s world of ETFs there actually are ways that every investor can play what even a few years ago had been virtually inaccessible markets.”
The easiest way for investors to get into the industrial metals trade is through the Powershares DB Base Metals Fund (DBB) ETF.
“Even though the news is pretty bearish to neutral, a lot of these markets like tin, like aluminum have really come back to life,” he says. “When you’re looking at broad assets to allocate to right now I think industrial metals are one of the top ones to consider.”
Still not convinced? Hoenig says the fact that the general public is not yet on board makes this the perfect time to consider metals like this. As the dollar continues to weaken and commodities in general strengthen, Hoenig says these markets are poised to take off.
On top of that some metals, palladium (PALL) for example, is being impacted by geopolitical concerns. Russia is a top palladium producer, and as tensions continue there Hoenig notes that price of the metal used largely in auto manufacturing has surged.
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- Investment & Company Information
- Jonathan Hoenig