Smart Money’s Rob Wherry recently examined the logic of maintaining commodities exposure in the midst of a major pullback.
The article “Keep a Toe in Commodities Despite Pullback” points out that there are two themes that have been influencing the prices of all kinds of commodities: New emerging middle classes around the globe, and rising energy demand that is outpacing production.
Wherry also points out that investors like Kanaly Trust’s James Shelton likes the inflation hedge commodities provide.
Suggested ETFs and ETNs to consider include:
Agriculture – PowerShares DB Agriculture (DBA), iPath Dow Jones-AIG Commodity Index Total Return ETN (DJP), iPath S&P GSCI Total Return (GSP)