Last column, I said that commodity stocks need not track the course of the dollar.
The one sector-specific speaker I heard was Donald Coxe, a strategy advisor for BMO Financial Group, who discussed commodity stocks.
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And it might be a good opportunity to load up on FCX if you can stand the volatility in commodity stocks.
He further discussed the need for patience when investing in commodity stocks.
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But after so much selling, it is disappointing that the low volume bounce on mostly beaten down former leaders and commodity stocks from May 18th is the best the market can do.
They will have the same risk profile as the raw materials but this time the rewards from being engaged with commodity based stocks will be far closer to the returns delivered by the commodities themselves.
The MSCI index of Asia Pacific stocks outside Japan was down 1.1 percent , with industrials and commodity-related stocks underperforming the most.
In the resulting report, Guru Picks: 35 Profit Makers For Volatile Times, 20 gurus provide 35 investment picks ranging from staid big-cap dividend stocks to commodity exchange-traded funds and low-priced stocks.
And investor interest in commodity-related stocks like Silver Wheaton (SLW) and Newmont Mining (NEM) has swelled.
He thinks the supply-side global economic boom can support higher commodity prices and stocks.
Commodity-linked stocks also benefited from the spate of upbeat data.
The best assets to own in order to obtain a positive return after adjusting for inflation are commodities and commodity-producing stocks, especially those that do not keep their retained earnings in US dollars.
"The market doesn't believe a lot of these commodity and oil stocks will not be able to duplicate the same quarters they had in the past, " said Cleveland Rueckert, an analyst at Birinyi Associates.
The Shanghai Composite finished 1.7% lower at 2147.96, its lowest level since March 2009, while Hong Kong's Hang Seng Index ended the day up 0.2% at 19121.34, as the poor performance of commodity and transportation stocks was offset by shares in local conglomerates and gaming stocks.
The Morgan Stanley Commodity Related Index (CRX) is an equal-dollar weighted index of 20 stocks involved in commodity related industries such as energy, non-ferrous metals, agriculture, and forest products.
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Although buying stocks of commodity related companies can provide additional risk over direct commodity investment, there is some evidence that investors are being compensated for those risks.
The cooling off in China particularly has taken copper prices down some 23% since the start of 2011, again, a more drastic decline in commodity prices than in common stocks.
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My guess is that commodity speculation would slow, stocks would rise, real estate would stabilize and begin to climb, and small businesses would start investing in their future once more.
The Euro currency, European stocks and the raw commodity markets were given a mild boost Monday when Greece announced overnight it would buy back up to 10 billion Euros of its outstanding bonds at a price from 30 to 40 cents on the dollar.
With the June 30th deadline fast approaching and economic data something of a mixed bag, stocks have recently pulled back and commodity prices pulled back even further.
In the 16th century Brazilwood was the commodity touted to save the country until stocks ran out.
The agricultural processing stocks are volatile, bouncing around with commodity booms and busts, and making the overall market look staid.
Higher futures prices could have sent a signal to commodity producers, who then decided to hoard their stocks rather than sell them in the cash market.
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Australian mining stocks advanced on the back of gains in commodity prices.
Stocks shrugged off recent worries Monday as tech and commodity shares propelled indexes to their highest levels in a month.
However, Johnson also looks for gold stocks to eventually catch up with the price of the commodity.
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Some energy stocks are seeing gains from the run-up in commodity prices.
Mining stocks made strong gains, responding favorably to an increase in commodity prices on Friday following the U.S. jobs report.
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