It’s important to understand the reasons why commodities can be cyclical investments. Knowing what to expect from the “boom-and-bust” sector can be incredibly valuable. Resource markets are driven by the forces of supply and demand. Sometimes it takes longer than usual for a commodity to respond to a rise in demand. Having in-depth information regarding these situations can be crucial to your investment portfolio.
In many investment scenarios, the boom-and-bust phenomenon is seen as a one-time event exclusive to that one specific opportunity. This is not the case with commodities. They may experience many ups and downs over time dependent on various situations. Steve Sjuggerud at Stansberry Research believes he has spotted one of those “busts” that’s on the verge of a “boom”. He thinks it’s coffee. After all, it is the number one consumed beverage on Earth after water. In several past years, the price of coffee has risen when it wasn’t expected to do so. If an uptrend starts in this area he will definitely be talking more about it and most likely investing in it too. Another analyst at the same company sees a similar opportunity to invest in the medical marijuana issue without the legal risk associated with the federal law situation. You would be wise to check out the kind of financial advice that’s coming out of Stansberry Research right now.
Stansberry Research analysts and editors have worked at some of the largest investment firms in the world. Their experience and diversity make them a source of some of the most insightful financial information that exists out there. They offer a broad range of investment advice brought forth from years of experience and perspective gathered from a myriad of backgrounds. Focused on the seemingly unimportant investments, they find opportunities to bring about the best risk-to-reward payoffs.