The Commodities Market

Commodities are raw materials sold in bulk. The materials include things like agricutural, livestock & meat, energy, precious metals, industrial metals, and rare metals. When the stock and bond markets are down the commodities market seems to nearly always be up. People need "stuff." By investing in commodities you balance your portfolio, increasing the chances of making money even when the stock market is down.

Investing in commodities is extremely risky. Commodity holdings move extremely quickly and unpredictably. Their value come in balancing out a portofolio, providing a lift when most other sectors of the market are down.

Not everyone can or should invest in commodities. Brokerage houses won't let you invest unless you meet certain net worth requirements. So don't worry about this as an investment option unless you're already rolling in the dough.

Links

Moneyweek.com - Article about investing in commodities

MSNBC.com - Should I invest in commodities?

MSN - Fast answers about commodity investing