The merits of buying commodities...

It's a favourite theme of mine, buying commodities. It's kinda the opposite of the Bitcoin thing. People were buying Bitcoin because it had done so well, and was rising (until it wasn't), so it seemed to be a bit of a bubble.

My favourite graph is that of an asset that has done badly, and is now rising. I feel intuitively comfortable with buying into a market that seems to be coming back from the dead. Commodities seem to fit into this field.

Photo: Sierra Valley Girl (via Flickr)

I was struck by the graph of the price of Cocoa yesterday. It looks like it's on the up. Will it continue? Nobody knows of course, and that is the rocky road that the trend-follower takes! If I were to buy it at this point, I would have a clear exit strategy that would either cut my losses, or tell me to take a profit when then uptrend is over. Members of my site will know what I mean by that.

If you are interested in my views of the different asset classes this week, please do have a look at the video below. You'll also see the graph of the cocoa price towards the end of the video

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Members of my site know what investments I use to get exposure to the different asset classes and know what I am up to in real-time, via a private Facebook page. Find out more here.


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