Wednesday, April 29, 2009

Bullish Commodities Stocks

Out of their dismal lows in early March, the stock markets rocketed 27% higher in a single month! After such fast gains, Wall Street remained skeptical. Was this a typical bear rally that would soon collapse? But as the last couple weeks have shown, it didn't. Stocks not only held their rally gains, but they continued moving higher.

The result is the biggest advance since the stock panic ignited. Even more importantly, these recent gains have generally been measured and orderly. This is a signature of new bull markets in contrast to the violent and short-lived bear-market rallies. The persistent stock-market strength is restoring hope and leading ostrich investors back to the markets. They are wondering which sectors have the best potential to thrive.

For a variety of reasons I'll outline in this essay, I believe the commodities stocks will be the best-performing sector in the coming years. Their incredibly bullish fundamentals, combined with dirt-cheap prices driven by stock-panic psychology, have created one of the greatest investment opportunities I've ever seen. This bullish sector deserves a sizable fraction of every investor's portfolio. (more)

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