Despite the recent financial crisis, many investors are nervous to simply throw their money at the stock market. The question on everyone mind lately is where will the strength lie in 2011 -2012?
With tightening in China and India many investors do not realize that commodities are fast becoming a very safe haven in the next few years.
The reason for this, is the rising food cost and inflation are giving these investment vehicles lots of speed and poise. If the economy start to get better, there are a lot of people who will make their fortunes in the commodities sectors. If the government keeps printing money, commodities will where you will want to be to protect yourself and your loved ones.
One good example is with oil, which has been increasing in prices over the last 3 months. We are now starting to run out of this reserve and there is evidence backing up these claims. That will keep the oil prices high for some time to come. No one on the face of the earth has found any oil fields and with such a high demand for this commodity the prices of oil will keep increasing in price.
No market, and no commodity ever goes up in a straight line, but as a hedge against inflation, commodities will be a very safe haven for the coming years. When there was violent inflation back in the the 1970’s stocks were not a good place to be, commodities were.
So owning stocks and bonds is very risky at the movement. Owning commodities and real assets is a very smart move for now.