I find it really hard to even know how to buy any of this stuff. Gold, silver, copper, wheat, soybeans, heating oil, zinc and on and on.
I have no clue what to buy or how to buy it. Sure you can dabble in futures trading, options or commodity ETFs that specialize in these sectors. I don't and have no idea how to make any money buying these stocks or funds.
Most of the time the risks are too great and more important, they pay no diividend. There is nothing to support the stock price when the market turns and goes sideways.
As Kevin O'Leary once said "when they go down (commodities) they don't touch the sides". Meaning, they drop so fast and precipitously that you have no time to react and sell your position.
So, why be there? To me the risks are too great and I never want to put my life savings at risk in stocks that don't pay a dividend.
Safety First
Material stocks have never been harder to buy for anybody trying to sleep at night than they are right now. Up wildly one day and down the next with nothing in between to pay you for that discomfort.
I would need a guide like 'Commodites for Dummies' to better understand what where and how to invest in this space.
When you look at the Canadian resource stocks they have really been hammered here in February. It is really hard for me to look at anything here to invest in.
Some stocks like Westshore Terminals WTE.TO pay a dividend of 2.5% but they are a one trick pony. They are a coal storage and loading terminal in B.C.with basically one customer and that is Teck Resources. How Teck goes, so goes WTE. I do not own WTE but for diversification and less volatility than a junior gold stock it is an idea for you.
One resource stock I do own is LIF.TO Labrador Iron Ore Royalty. It pays a dividend of 3.7% on a quarterly basis. It owns a 15% interest in Iron Ore Company of Canada which operates an iron mine in Labrador City. It also has a tendency of paying a special dividend once a year which is also nice.
You can also look at some energy stocks that pay a dividend but they tend to have a higher beta and not really something a retiree like me wants to pin my future hopes on.
I would rather look at more stable areas of the market like banks and insurance companies.
When you look at the Canadian resource stocks they have really been hammered here in February. It is really hard for me to look at anything here to invest in.
Where I Would Look
Some stocks like Westshore Terminals WTE.TO pay a dividend of 2.5% but they are a one trick pony. They are a coal storage and loading terminal in B.C.with basically one customer and that is Teck Resources. How Teck goes, so goes WTE. I do not own WTE but for diversification and less volatility than a junior gold stock it is an idea for you.
One resource stock I do own is LIF.TO Labrador Iron Ore Royalty. It pays a dividend of 3.7% on a quarterly basis. It owns a 15% interest in Iron Ore Company of Canada which operates an iron mine in Labrador City. It also has a tendency of paying a special dividend once a year which is also nice.
You can also look at some energy stocks that pay a dividend but they tend to have a higher beta and not really something a retiree like me wants to pin my future hopes on.
I would rather look at more stable areas of the market like banks and insurance companies.
How about you? Do you invest in commodities? What's your strategy with this asset class? I would love to hear from you.
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