Is there any doubt that we are in the mist of a bull market in the commodities sector, especially for natural resources? The expert analysts we follow believe this bull market will last another 15 to 20 years. The purpose of this article is not to convince you of the existence of the bull market but rather to discuss the different investment strategies that investors can use to accomplish their objectives.
By the way, exactly what is your investment objective? Do you want to follow the crowd? Do you want the excitement and thrill of playing' the futures markets? Do you like to be called a speculator or an investor?
Frankly, our investment objective is to be labeled an investor which means we take positions of normally one year or more and stay away from the short-term trading of futures and options. However, if this is your area of expertise, go for it, but the average individual will lose at least 80% to 90% of the time. Yes, those are the facts.
Remember why we are investing. It is because we are in a bull market, so let's relax and enjoy it.
Take some positions and follow them closely and let our profits accumulate. Yes, the day will come when it is prudent to take profits but currently we see the next 9 - 12 months as having the potential for a huge increase in the natural resource stocks and other alternative investments in this area.
What is the natural resources sector?
Gold | Cobalt |
Silver | Oil & Gas |
Uranium | Coal |
Nickel | Lead |
Copper | Iron Ore |
Zinc | Platinum |
Molybdenum | Diamonds |
There are many ways to invest in this sector and the choices are growing every day. When most investors hear the word, commodities, they think of RISK, i.e., the futures markets. But there are many other ways to play this sector. There are ETF's (Exchange Traded Funds), commodity funds, mutual funds, molybdenum funds, uranium funds, funds which are investing in uranium, moly and nickel shares, etc. For those investors wanting others to make their individual investment decisions you should just pick an ETF or a mutual fund and relax - there are some very good choices available.
Many investors, however, prefer to be more hands on and like to pick their own companies after doing research and their due diligence. There are literally thousands of companies which are involved in the exploration, development and production of natural resources so this can be a rather daunting task for investors. We suggest you pick your analysts and investment newsletters carefully and then follow them closely. Also, you may wish to consider whether any of the companies in which you are interested have long-term warrants which are trading.
Let's face it; making these investment decisions is not easy for everyone. It takes a lot of time, research and the ability to make good decisions. Frankly, we, as investors, are not looking to make a little money - we are looking to make a killing. We will accomplish this because we are in the right place at the right time and are confident we are making the correct decisions as to the vast array of investment choices and the patience necessary to succeed.
Recently due to the incredibly low investor sentiment in natural resources shares, we can surmise that many investors have given up and sold out. Shame on you! Yes, core beliefs and convictions will be tested, perhaps many times before we hit the ultimate peak. The choice will be yours whether you have the staying power to be there at the top (at least within 10% of the top) and whether you have made the correct decisions and have maximized your investment returns.
For those readers interested in education and information on warrants, we encourage you to visit our website where you can now signup to receive our Free Saturday newsletter which is appropriately titled, The Warrant Report.