"A once in a lifetime super bull market in commodities is underway," note resource experts Mary Anne and Pamela Aden. Here, the advisors look at some favorite commodity stocks in their The Aden Forecast.
"Commodities are in a mega super rise is because of the dramatic changes in the global economy. The rise that started in commodities in 2001 has continued to expand over the years and we believe the upmove is just warming up and it has years to run.
"There are several reasons for this. The weakening dollar and low interest rates have certainly helped push up the whole sector while investment demand grew as an inflation hedge. But the key reason why the commodities are in a mega super rise is because of the dramatic changes in the global economy.
"China's need for natural resources has set off this global boom and it's been a big factor fueling the boom in emerging countries as well. It's also an important reason why the commodity moves are volatile. Supplies have become limited. So even a small disruption in supply shakes up the markets.
"We could see a contra move in the upcoming months but the major trends are very much intact, which is up for gold and silver, and down for the dollar.
"We strongly believe that staying invested during the major rise is the best way to make money, in spite of the ups and downs. The resource sector is poised to rise. Use the downs to add to your positions and plan on being a long-term investor.
"Among our portfolio holdings in the sector are DB Powershares Commodity Index Tracking ETF (ASE: DBC) and iShares GS Natural Resources (NYSE: IGE). Among individual resources companies, we recommend BHP Billiton (NYSE: BHP) and Freeport McMoran (NYSE: FCX)."
Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.
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