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Five Commodity Investments to Buy for Profiting Despite Inflation

Five commodity investments to buy for profiting despite inflation offer an opportunity find refuge when much of the market has been pulling back. Investors…

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2 years ago

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Five commodity investments to buy for profiting despite inflation offer an opportunity find refuge when much of the market has been pulling back.

Investors may want to diversify into copper and gold, among other metals, after the recent rise in the share prices of oil stocks that could be nearing a short-term peak, according to a new analysis from BofA Global Research. Gold appears to be shining more brightly and is showing signs of recovering after it topped out at $2,078 per ounce in August 2020.

With oil prices topping $92 per ounce for WTI Crude, BofA wrote that investors may want to scale back on their ownership of black gold and increase their holdings in gold and other metals that are showing signs of appreciating. The appeal of gold will shine even more if it breaks above $1,860-$1,880 per ounce, according to BofA. The price of gold is $1,872.00 as of this writing, so gold is not far from exceeding that threshold.

Consumer prices, including oil, have soared at the fastest pace in the past 40 years. The U.S. Labor Department reported on Thursday, Feb. 10, that prices in January 2022 were 7.5% higher than a year ago. It marked the biggest jump in prices since 1982.

Five Commodity Investments to Buy Could Be Affected by Russia

Oil prices have risen in recent weeks as the number of Russian troops along the border of Ukraine have surged from roughly 130,000 to more than 150,000 on Feb. 15. U.S. President Joe Biden and other U.S. officials have urged all Americans to leave Ukraine immediately.

Claims by Russian President Vladimir Putin and the Kremlin on Feb. 15 that the country was withdrawing some troops from near Ukraine’s borders could not be “verified,” President Biden said. Media reports indicate Putin has told his military forces to be ready to invade by Wednesday, Feb. 16, but it is unclear if he has decided to attack Ukraine, Russia’s mineral-rich neighbor.

Ukraine’s President Volodymyr Zelenskyy has called for a national day of unity on Feb. 16. Meanwhile, Putin is insisting that the United States and the North American Treaty Organization (NATO) agree to deny Ukraine membership in the military alliance, regardless of what its citizens want. A series of cyberattacks on Feb. 15 occurred against the websites of the Ukrainian army, its defense ministry and major banks.

Five Commodity Investments to Buy for Profiting Feature Freeport-McMoRan

With Ukraine’s economy and production of minerals imperiled by Russia’s threats, the price of commodities could be pushed upward if the supply is trimmed. The situation has not gone unnoticed by investment leaders.

Mark Skousen, PhD, the leader of the Forecasts & Strategies investment newsletter, as well as the Five Star Trader, TNT Trader, Fast Money Alert and Home Run Trader advisory services, recently recommended Freeport-McMoRan (NYSE: FCX), a giant international copper, gold and oil producer. With the price of copper, gold and oil climbing, Skousen expects FCX to climb. Plus, the stock is selling for only 12 times expected earnings and its dividend recently was increased.

Chart courtesy of www.stockcharts.com

Zacks’ Research Daily reported on Feb. 14 that shares of Freeport-McMoRan have gained 6.9% in the last three months, compared to a loss of 8.3% in the Zacks Mining – Non Ferrous industry. The Zacks forecast is that Freeport’s initiatives to reduce debt will aid its financial position.

Freeport is conducting exploration activities near its existing mines with a focus on expanding reserves to support additional future production capacity, Zacks reported. The mining company further is well-positioned to benefit from automotive electrification, which is positive for copper, since electrical vehicles are copper intensive.

Five Commodity Investments to Buy for Profiting Aided by Rising Copper Prices

“Higher copper prices also are expected to support margins,” Zacks concluded. “FCX’s margins are likely to be further supported by reduced interest rates.”

Barron’s magazine reported on January 14, 2022, that miners are off to a strong start in 2022 and Freeport-McMoRan could be the “big winner.”

“With the price of copper, gold and oil climbing, I expect FCX to renew its upward trend,” wrote Skousen, who has been named as one of the world’s Top 20 living economists by www.superscholar.org. “It is selling for only 12 times expected earnings and recently raised its dividend.”

Mark Skousen, a descendent of Benjamin Franklin, meets with Paul Dykewicz.

Five Commodity Investments to Buy for Profiting Include Rio Tinto

Goldman Sachs is forecasting a “commodities supercycle” that would feature a boom in industrial commodities such as copper, iron ore and minerals that potentially could last for decades. The prediction is gaining supporters.

Jim Woods, who writes the Successful Investing and Intelligence Report investment newsletters, as well as heads the Bullseye Stock Trader and High Velocity Trader advisory services, agrees with Goldman Sachs’s analysis. Woods wrote to his Bullseye Stock Trader subscribers recently that he liked the investment firm’s view that “copper is the new oil.” 

Copper prices have surged to $4.50 per pound and could move higher to spur new infrastructure spending around the globe, Woods wrote. Plus, copper is indispensable in global decarbonization strategies, he added.

Among the many ways to take advantage of the boom in copper and industrial metals, Woods highlighted Rio Tinto PLC (NYSE: RIO), a global mining giant that searches for, and extracts, a variety of minerals from places such as North America and Australia. Iron ore is RIO’s dominant commodity, with lesser contributions from copper, aluminum, gold, industrial minerals and even diamonds, he added.

Chart courtesy of www.stockcharts.com

“I am old enough to recall the company’s 1995 merger of RTZ and CRA, via a dual-listed structure, which created the present-day RIO,” Woods wrote to his Bullseye Stock Trader subscribers. “Today, the two operate as a single business entity. So, what’s so special about RIO?”

Rio Tinto Stands Out Among Five Commodity Investments to Buy

Rio Tinto is in the top 1% of all public companies in terms of earnings per share (EPS) growth over the past several quarters and several years, Woods wrote. Last quarter, the company grew its EPS by 156% year over year. The company is scheduled to report its latest results on Feb. 16. 

“As for share price performance, RIO has really shown its mettle over the past three months, as the share price has spiked nearly 30% over that period,” Woods pointed out. “Over the past 52 weeks, RIO remained in the top 13% of all public companies in terms of relative price strength.”

On a technical trading basis, RIO shares now are breaking out to new 52-week highs after forming a very bullish cup-with-handle chart pattern, Woods observed. 

Jim Woods and Paul Dykewicz discuss stocks to buy now.

Pension Fund Chair Chooses Three of Five Commodity Investments to Buy 

Bob Carlson, a pension fund chairman who also leads the Retirement Watch investment newsletter, said he recommends investing in three funds that offer exposure to commodities. One of them is a current recommendation in his Invest with the Winners portfolio from the Retirement Watch newsletter.

That pick is Invesco DB Commodity Tracking (DBC). DBC is up 8.15% over the last four DBC weeks. It is up 9.87% for the year to date and 44.59% over 12 months. 

Carlson monitors several models that try to identify from among a diversified group of exchange-traded funds (ETFs) the one that has strong recent returns and is likely to continue earning above-average returns for at least another month.

“Each month, the portfolio is positioned in either one ETF or cash,” Carlson wrote. “The strategy, on average, makes a trade every two to three months, though in 2020, it held a gold ETF for most of the year.”

Chart courtesy of www.stockcharts.com

Five Commodity Investments to Buy Include Inflation Hedge

A recommended basket of inflation hedges is offered through DWS RREEF Real Assets (AAASX). The fund diversifies among gold, broad commodities, real estate investment trusts (REITs) and Treasury Inflation-Protected Securities (TIPS).

It tactically changes the allocation among these sectors with changes in the economic cycle. It also changes the holdings within those broad sectors based on detailed reviews by its analysts, Carlson counseled.

The fund is down 2.32% in the last four weeks, 0.23% over three months and 2.54% for the year to date. But it is up 19.49% over 12 months.

Pension and Retirement Watch chief Bob Carlson takes questions from Paul Dykewicz.

Gold started 2022 better than it ended 2021 but still hasn’t established the positive breakout Carlson said he expected to occur amid rising inflation. Threats of international conflicts also should boost gold’s price, as should a decline in the U.S. dollar, Carlson continued. 

Chart courtesy of www.stockcharts.com

Five Commodity Investments to Buy for Profiting from Inflation Include IAU

Carlson also recommends iShares Gold Trust (IAU) as a “very liquid, low-cost way” to invest in the precious yellow medal. IAU is down 0.38% in the last four weeks and 0.85% so far in 2022. But it is up 0.85% over three months and 0.61% over 12 months.

Gold is a traditional hedge against inflation. IAU is showing signs of rebounding and now could be a good time to buy, Carlson counseled.

Chart courtesy of www.stockcharts.com

COVID-19 Concerns Lead CDC Director to Encourage Indoor Mask Wearing

New COVID-19 cases and hospitalizations are on the wane, but more than 2,000 Americans still die each day from the virus. As of Feb. 15, the United States was averaging 151,056 new COVID-19 cases, according to Johns Hopkins University.

It marks a 44% drop but from last week, as new cases have fallen to one-fifth of the high of 800,000-plus cases per day a month ago. Nonetheless, the chief of the U.S. Centers for Disease Control and Prevention (CDC) is standing by the agency’s indoor mask-wearing guidelines, advising not to change the recommendations or loosen restrictions aimed at curbing COVID-19. CDC Director Dr. Rochelle Walensky is urging students to wear well-fitting masks indoors consistently at school, along with people in public indoor settings amid high or “substantial transmission.” 

The continuing COVID-19 threat is leading many people in America to obtain COVID-19 boosters. However, more than 60 million people in the United States remain eligible to be vaccinated and have yet to do so, said Dr. Anthony Fauci, the chief White House medical adviser on COVID-19.

COVID-19 Cases Worldwide Top 415 Million and Cause 5.8 Million Deaths

As of Feb. 15, 252,277,758 people, or 76% of the U.S. population, have received at least one dose of a COVID-19 vaccine, the CDC reported. Those who are fully vaccinated total 214,104,148, or 64.5% of the U.S. population, according to the CDC.

COVID-19 deaths worldwide, as of Feb. 16, topped the 5.8 million mark to hit 5,837,873, according to Johns Hopkins University. Worldwide COVID-19 cases have soared past 415 million, reaching 415,508,449 on that date.

U.S. COVID-19 cases, also as of Feb. 16, topped 78 million, totaling 78,038,251 and leading to 925,441 deaths. America has the dreaded distinction as the country with the most COVID-19 cases and deaths.

The five commodities investments to buy for profiting despite inflation are well-positioned for those seeking to acquire shares before their prices surge. However, investors need to understand that uncertainty about whether Russia may invade Ukraine exposes investors to potential volatility beyond their control.

Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Seeking Alpha, GuruFocus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The book is great as a gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many others. Call 202-677-4457 for multiple-book pricing.

The post Five Commodity Investments to Buy for Profiting Despite Inflation appeared first on Stock Investor.

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Low Iron Levels In Blood Could Trigger Long COVID: Study

Low Iron Levels In Blood Could Trigger Long COVID: Study

Authored by Amie Dahnke via The Epoch Times (emphasis ours),

People with inadequate…

Published

8 hours ago

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March 9, 2024

By

Low Iron Levels In Blood Could Trigger Long COVID: Study

Authored by Amie Dahnke via The Epoch Times (emphasis ours),

People with inadequate iron levels in their blood due to a COVID-19 infection could be at greater risk of long COVID.

(Shutterstock)

A new study indicates that problems with iron levels in the bloodstream likely trigger chronic inflammation and other conditions associated with the post-COVID phenomenon. The findings, published on March 1 in Nature Immunology, could offer new ways to treat or prevent the condition.

Long COVID Patients Have Low Iron Levels

Researchers at the University of Cambridge pinpointed low iron as a potential link to long-COVID symptoms thanks to a study they initiated shortly after the start of the pandemic. They recruited people who tested positive for the virus to provide blood samples for analysis over a year, which allowed the researchers to look for post-infection changes in the blood. The researchers looked at 214 samples and found that 45 percent of patients reported symptoms of long COVID that lasted between three and 10 months.

In analyzing the blood samples, the research team noticed that people experiencing long COVID had low iron levels, contributing to anemia and low red blood cell production, just two weeks after they were diagnosed with COVID-19. This was true for patients regardless of age, sex, or the initial severity of their infection.

According to one of the study co-authors, the removal of iron from the bloodstream is a natural process and defense mechanism of the body.

But it can jeopardize a person’s recovery.

“When the body has an infection, it responds by removing iron from the bloodstream. This protects us from potentially lethal bacteria that capture the iron in the bloodstream and grow rapidly. It’s an evolutionary response that redistributes iron in the body, and the blood plasma becomes an iron desert,” University of Oxford professor Hal Drakesmith said in a press release. “However, if this goes on for a long time, there is less iron for red blood cells, so oxygen is transported less efficiently affecting metabolism and energy production, and for white blood cells, which need iron to work properly. The protective mechanism ends up becoming a problem.”

The research team believes that consistently low iron levels could explain why individuals with long COVID continue to experience fatigue and difficulty exercising. As such, the researchers suggested iron supplementation to help regulate and prevent the often debilitating symptoms associated with long COVID.

“It isn’t necessarily the case that individuals don’t have enough iron in their body, it’s just that it’s trapped in the wrong place,” Aimee Hanson, a postdoctoral researcher at the University of Cambridge who worked on the study, said in the press release. “What we need is a way to remobilize the iron and pull it back into the bloodstream, where it becomes more useful to the red blood cells.”

The research team pointed out that iron supplementation isn’t always straightforward. Achieving the right level of iron varies from person to person. Too much iron can cause stomach issues, ranging from constipation, nausea, and abdominal pain to gastritis and gastric lesions.

1 in 5 Still Affected by Long COVID

COVID-19 has affected nearly 40 percent of Americans, with one in five of those still suffering from symptoms of long COVID, according to the U.S. Centers for Disease Control and Prevention (CDC). Long COVID is marked by health issues that continue at least four weeks after an individual was initially diagnosed with COVID-19. Symptoms can last for days, weeks, months, or years and may include fatigue, cough or chest pain, headache, brain fog, depression or anxiety, digestive issues, and joint or muscle pain.

Tyler Durden Sat, 03/09/2024 - 12:50

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Walmart joins Costco in sharing key pricing news

The massive retailers have both shared information that some retailers keep very close to the vest.

Published

11 hours ago

on

March 9, 2024

By

As we head toward a presidential election, the presumed candidates for both parties will look for issues that rally undecided voters. 

The economy will be a key issue, with Democrats pointing to job creation and lowering prices while Republicans will cite the layoffs at Big Tech companies, high housing prices, and of course, sticky inflation.

The covid pandemic created a perfect storm for inflation and higher prices. It became harder to get many items because people getting sick slowed down, or even stopped, production at some factories.

Related: Popular mall retailer shuts down abruptly after bankruptcy filing

It was also a period where demand increased while shipping, trucking and delivery systems were all strained or thrown out of whack. The combination led to product shortages and higher prices.

You might have gone to the grocery store and not been able to buy your favorite paper towel brand or find toilet paper at all. That happened partly because of the supply chain and partly due to increased demand, but at the end of the day, it led to higher prices, which some consumers blamed on President Joe Biden's administration.

Biden, of course, was blamed for the price increases, but as inflation has dropped and grocery prices have fallen, few companies have been up front about it. That's probably not a political choice in most cases. Instead, some companies have chosen to lower prices more slowly than they raised them.

However, two major retailers, Walmart (WMT) and Costco, have been very honest about inflation. Walmart Chief Executive Doug McMillon's most recent comments validate what Biden's administration has been saying about the state of the economy. And they contrast with the economic picture being painted by Republicans who support their presumptive nominee, Donald Trump.

Walmart has seen inflation drop in many key areas.

Image source: Joe Raedle/Getty Images

Walmart sees lower prices

McMillon does not talk about lower prices to make a political statement. He's communicating with customers and potential customers through the analysts who cover the company's quarterly-earnings calls.

During Walmart's fiscal-fourth-quarter-earnings call, McMillon was clear that prices are going down.

"I'm excited about the omnichannel net promoter score trends the team is driving. Across countries, we continue to see a customer that's resilient but looking for value. As always, we're working hard to deliver that for them, including through our rollbacks on food pricing in Walmart U.S. Those were up significantly in Q4 versus last year, following a big increase in Q3," he said.

He was specific about where the chain has seen prices go down.

"Our general merchandise prices are lower than a year ago and even two years ago in some categories, which means our customers are finding value in areas like apparel and hard lines," he said. "In food, prices are lower than a year ago in places like eggs, apples, and deli snacks, but higher in other places like asparagus and blackberries."

McMillon said that in other areas prices were still up but have been falling.

"Dry grocery and consumables categories like paper goods and cleaning supplies are up mid-single digits versus last year and high teens versus two years ago. Private-brand penetration is up in many of the countries where we operate, including the United States," he said.

Costco sees almost no inflation impact

McMillon avoided the word inflation in his comments. Costco  (COST)  Chief Financial Officer Richard Galanti, who steps down on March 15, has been very transparent on the topic.

The CFO commented on inflation during his company's fiscal-first-quarter-earnings call.

"Most recently, in the last fourth-quarter discussion, we had estimated that year-over-year inflation was in the 1% to 2% range. Our estimate for the quarter just ended, that inflation was in the 0% to 1% range," he said.

Galanti made clear that inflation (and even deflation) varied by category.

"A bigger deflation in some big and bulky items like furniture sets due to lower freight costs year over year, as well as on things like domestics, bulky lower-priced items, again, where the freight cost is significant. Some deflationary items were as much as 20% to 30% and, again, mostly freight-related," he added.

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Walmart has really good news for shoppers (and Joe Biden)

The giant retailer joins Costco in making a statement that has political overtones, even if that’s not the intent.

Published

12 hours ago

on

March 9, 2024

By

As we head toward a presidential election, the presumed candidates for both parties will look for issues that rally undecided voters. 

The economy will be a key issue, with Democrats pointing to job creation and lowering prices while Republicans will cite the layoffs at Big Tech companies, high housing prices, and of course, sticky inflation.

The covid pandemic created a perfect storm for inflation and higher prices. It became harder to get many items because people getting sick slowed down, or even stopped, production at some factories.

Related: Popular mall retailer shuts down abruptly after bankruptcy filing

It was also a period where demand increased while shipping, trucking and delivery systems were all strained or thrown out of whack. The combination led to product shortages and higher prices.

You might have gone to the grocery store and not been able to buy your favorite paper towel brand or find toilet paper at all. That happened partly because of the supply chain and partly due to increased demand, but at the end of the day, it led to higher prices, which some consumers blamed on President Joe Biden's administration.

Biden, of course, was blamed for the price increases, but as inflation has dropped and grocery prices have fallen, few companies have been up front about it. That's probably not a political choice in most cases. Instead, some companies have chosen to lower prices more slowly than they raised them.

However, two major retailers, Walmart (WMT) and Costco, have been very honest about inflation. Walmart Chief Executive Doug McMillon's most recent comments validate what Biden's administration has been saying about the state of the economy. And they contrast with the economic picture being painted by Republicans who support their presumptive nominee, Donald Trump.

Walmart has seen inflation drop in many key areas.

Image source: Joe Raedle/Getty Images

Walmart sees lower prices

McMillon does not talk about lower prices to make a political statement. He's communicating with customers and potential customers through the analysts who cover the company's quarterly-earnings calls.

During Walmart's fiscal-fourth-quarter-earnings call, McMillon was clear that prices are going down.

"I'm excited about the omnichannel net promoter score trends the team is driving. Across countries, we continue to see a customer that's resilient but looking for value. As always, we're working hard to deliver that for them, including through our rollbacks on food pricing in Walmart U.S. Those were up significantly in Q4 versus last year, following a big increase in Q3," he said.

He was specific about where the chain has seen prices go down.

"Our general merchandise prices are lower than a year ago and even two years ago in some categories, which means our customers are finding value in areas like apparel and hard lines," he said. "In food, prices are lower than a year ago in places like eggs, apples, and deli snacks, but higher in other places like asparagus and blackberries."

McMillon said that in other areas prices were still up but have been falling.

"Dry grocery and consumables categories like paper goods and cleaning supplies are up mid-single digits versus last year and high teens versus two years ago. Private-brand penetration is up in many of the countries where we operate, including the United States," he said.

Costco sees almost no inflation impact

McMillon avoided the word inflation in his comments. Costco  (COST)  Chief Financial Officer Richard Galanti, who steps down on March 15, has been very transparent on the topic.

The CFO commented on inflation during his company's fiscal-first-quarter-earnings call.

"Most recently, in the last fourth-quarter discussion, we had estimated that year-over-year inflation was in the 1% to 2% range. Our estimate for the quarter just ended, that inflation was in the 0% to 1% range," he said.

Galanti made clear that inflation (and even deflation) varied by category.

"A bigger deflation in some big and bulky items like furniture sets due to lower freight costs year over year, as well as on things like domestics, bulky lower-priced items, again, where the freight cost is significant. Some deflationary items were as much as 20% to 30% and, again, mostly freight-related," he added.

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