The money to be made over the next several years in the futures markets, specificially commodities is incalculable. You don't want to get left out of this upcoming investment opportunity. We are looking at entering the second leg of potentially the biggest major uptrend in the commodity markets in the last thirty years. Just about every market has made gains, settled back down a bit, and is now ready to continue upwards. If historical market behavior can shed any light on the current situation, prices in many basic commodity markets will take off to record setting highs over the next 2-3 years. To give you an idea of what I think is in store, take a look at my top five picks for 2007:
1 - Gold
Buy! I forecast that for at least the next few years, the floor of gold prices will remain near $550. Even though prices topped out at more than $600 per ounce, the gold market later survived a correction, pulling back about 50% to between $625 and $525. When I wrote this article, the price had climbed back up to $630. My prediction: gold will increase beyond its record high to reach more than $1,000 per ounce. Because gold prices lead those of silver, I recommend gold over silver. It would amaze me if gold plummets below $500 in the near future, but I can surely picture it elevating to over $2,000 per ounce in the next year and a half.
2 - Cotton
Cotton has been, up to this point, a kind of "weak sister" in the overall bull market in basic futures prices. Whenever it finally joins the flow of the overall market, I expect it to gain pace rapidly. Currently, cotton is hovering around the 50-cent level, despite steadily increasing export demands from China and India, and despite the fact that cotton production across the South still has not fully recovered from the destruction of Hurricane Katrina. My expectation: cotton will double in price over the next 24 months.
3 - Wheat
Among the grains, wheat has shown unfailing strength almost since the beginning of the current bull market. Even on days when USDA reports knocked down soybeans and corn, wheat was determined to push through. My long-term price target on wheat is $8-$10.
4 - Cocoa
Cocoa has been acting a bit like the gold market--that is, it spent several years going not much of anywhere at all, and definitely not higher. Then, in the initial phase of the current bull market, it shot all the way up to the mid-20s in price. Since then, it has moved back down the to the $14-$15 level, and has recently shown signs of bottoming out and recovering. Look for cocoa, like nearly every other market, to zoom back up, setting new all-time highs during this second stretch of the bull market. If you lost out on the run-up the first time, don't get left out in the rain again. Buy cocoa.
5 - The CRB Index
The CRB Index is the easy way to benefit from gains across the entire commodities market, which now happens to be the most significant bull market we have seen. In the 1980s and 1990s, investors often wasted too much time searching for winning stocks. In those days, it was practically a free ticket to paradise to buy into in the Dow Jones or S&P indexes. The CRB Index is the equivalent for commodities. Especially for beginning commodities investors, the CRB Index lets you earn from all market movement without having to pinpoint a certain hot market and investment time. As in all markets, every commodity market has its good days and bad ones, but in general the market always trends up. We are living through a bull market, after all.
The chance to win big in the commodity markets over the next 5 years is the single greatest investment opportunity that I have ever seen. I do not expect to see another one like it within the next 50 years. Do not miss out on this chance to amass a fortune that could make you set for life, in the investment horizon of just a few years.
Halston has sinced written about articles on various topics from Futures Trading, Cars and How To Grow Wealth. Halston Adams is an ex-broker who managed to model top traders, helping him to multiply his own $8,000 trading account into over $56,000 in 3 years. Learn more about his trading approach at:. Halston's top article generates over 480 views. to your Favourites.
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