Stock Investor Insights: Six Commodities Investments to Buy as Putin Wages War on Ukraine

You are receiving this email because you signed up to receive our free e-letters, or you purchased a product or service from its publisher, Eagle Financial Publications. Six Commodities Investments to Buy as Putin Wages War on Ukraine 05/25/2022 [Sponsored Content [Inflation Is a Monstrous Liability](]( Grocery bills are out of control. Gas prices are sky high. All over the country, we're seeing derailed retirement plans and squeezed lifestyles. And make no mistake, government officials aren't coming to save you. You've seen what happens when they try. So… if folks want to prosper and protect their hard-earned wealth from the ravages of inflation, they MUST take matters into their own hands … and quickly. [Click to watch this special video presentation ]( [Click Here...]( Six commodities investments to buy amid the sustained [attack of Ukraine]( by Russia’s [President Vladimir Putin]( and rising inflation provide potential to profit even as the market has been pulling back so far in 2022. The six commodities investments to buy include those involved in oil, gold and grain due to current supply shortages that are showing no signs of abating anytime soon. Putin’s order for Russian troops to invade Ukraine on Feb. 24 has [disrupted the neighboring nation’s agricultural production](, led to the [theft of grain]( and imposed an [ongoing blockade]( in the Black Sea to stop farmers from exporting their crops. Crude oil inventories are down to a “dangerously low point” across Europe, North America and Organisation for Economic Co-operation and Development (OECD) Asia, just as spare production capacity from OPEC+ nations slid to the lowest levels since April 2020, according to BofA Global Research. Inventories of petroleum products also have fallen to “precarious levels” for middle distillates and even gasoline as the market heads into the peak of the U.S. summer driving season, the investment firm added. As a result, refined petroleum cracks -- the differences between crude oil and the prices of the wholesale petroleum products such as gasoline -- recently have “spiked to record levels,” contributing to volatility, BofA wrote. In addition, strategic oil barrels held by OECD governments already are low and likely to decline steeply going forward, leaving consumers exposed to future negative supply shocks, BofA predicted. Pension Fund Chairman Recommends Broad Commodity Funds Bob Carlson, a pension fund chairman who also leads the [Retirement Watch]( investment newsletter, recommended Cohen & Steers MLP & Energy Opportunity Fund (MLOAX) to all the portfolios in his June 2022 issue. Oil and natural gas should be good investments as Europe looks to reduce dependence on Russian exports, Carlson told me. Plus, energy producers in the United States are focused on increasing cash flow and earnings, not maximizing drilling expenses in the short run to increase output, he added. Bob Carlson, who leads [Retirement Watch]( meets with Paul Dykewicz. Good investment opportunities can be found with companies that provide the pipelines, storage facilities and other infrastructure needed to supply the world with oil, natural gas and other energy sources, Carlson continued. “One of the attractive qualities of these investments is that their revenues are independent of the prices of the commodities,” Carlson counseled. “The firms charge fees for their services, and the fees often are adjusted for inflation. Their revenues and earnings depend on the volume of commodities passing through their facilities, not the price of the commodity.” Key energy service companies provide total returns, aided by current income and price appreciation, through investments in energy-related master limited partnerships (MLPs) and securities of industry companies, Carlson pointed out. Those businesses are expected to derive at least 50% of their revenues or operating income from exploration, production, gathering, transportation, processing, storage, refining, distribution or marketing of natural gas, crude oil and other energy resources. Chart courtesy of [www.stockcharts.com]( Cohen & Steers Fund Leads List of Six Commodities Investments to Buy Cohen & Steers MLP & Energy Opportunity Fund recently held 53 positions and had 50% of its portfolio in the 10 largest positions. Top holdings of the fund included Enbridge (NYSE: ENB), Cheniere Energy (NYSEAMERICAN: LNG), Williams Companies (NYSE: WMB), TC Energy (NYSE: TRP) and Energy Transfer (NYSE: ET). The fund has achieved strong returns since April 2020. Indeed, it has been on an upward trajectory since the second half of December 2021. “Crucially, oil prices have held up well even in the face of a slowing Chinese economy and widespread lockdowns,” according to BofA. “Given that most China indicators point to a major decline in mobility across the country, any improvement in the COVID-19 situation in large Chinese cities could send oil prices much higher.” [[Top 20 Living Economist Shares the Largest Position in His Personal IRA]( Investing legend Dr. Mark Skousen recently gave a talk to a small group in the heart of Washington, D.C. In it, he revealed the cornerstone of his retirement plan -- and the one investment that helped make him a millionaire. [Click here to watch Dr. Skousen's presentation]( -- and learn about “the best way to become a millionaire in America.” [Click Here...]( Carlson’s Chooses DBA to Join Six Commodities Investments to Buy Despite the evils of war, investors still can profit from the rise in grain prices and other commodities through the futures markets, even as many other equities slip. Instead of buying futures directly, investors can purchase diversified agriculture commodities through Invesco DB Agriculture Fund (DBA), Carlson said. That ETF seeks to track changes in the DBIQ Diversified Agriculture Index Excess Return. The ETF also earns interest income from cash it invests primarily in treasury securities, while holding them as collateral for the futures contracts. The major holdings in the index are soybeans, wheat, corn, coffee and live cattle. The index is reconstituted each November. Chart courtesy of [www.stockcharts.com]( Gold Funds Featured Among Six Commodities Investments to Buy Carlson also is recommending gold through iShares Gold Trust (IAU). He described it as the “cheapest, most liquid way” to invest in the shiny yellow metal. Gold has had its ups and downs in the face of rising global inflation, Russia’s invasion of Ukraine, China’s increasing military flyovers of nearby Asian nations and other geopolitical conflicts. At the same time, the U.S. dollar has been appreciating amid high inflation after the Fed recently raised interest rates by 0.5% and promised additional increases later in 2022. However, there are many risks for the U.S. dollar, so continuing to hold gold remains a good hedge, Carlson counseled. IAU has retreated since early March, so investors seeking to buy it now that it is rebounding still may do so. Those who believe inflation may stay through 2022 can try to capture gains before the trend no longer is a friend. Chart courtesy of [www.stockcharts.com]( Skousen Calls GLD One of the Six Commodities Investments to Buy “Gold has done far better than stocks, which are down 15-25% this year,” said Mark Skousen, who is recommending SPDR Gold Shares (NYSE Arca: GLD) in his [Forecasts & Strategies]( investment newsletter. Mark Skousen, head of [Forecasts & Strategies]( meets with Paul Dykewicz. GLD has risen nearly 16% since Skousen recommended it about two years ago. Gold climbed 2021 in anticipation of rising inflation, but its performance has been flat so far this year. If gold truly is an indicator of inflation, the previous yellow metal’s stagnant price may be signaling that price inflation will wane heading into 2023. The investment objective is for the GLD shares to reflect the performance of the price of gold bullion, after subtracting the trust’s expenses. The trust, formed on November 12, 2004, physically holds gold bars. The trust’s shares are designed for investors who want a cost-effective and convenient way to invest in gold, according to the company’s prospectus. Skousen, who also leads the [Five Star Trader]( [Home Run Trader]( [TNT Trader]( and [Fast Money Alert]( services, recently was a featured speaker at the Vancouver Resource Investment Conference and advised attendees that he recommended gold as a minor holding in every portfolio. Chart courtesy of [www.stockcharts.com]( EPD Is Another of the Six Commodities Investments to Buy Oil has done much better as an inflation hedge than gold, Skousen said. One example is his recommendation of Enterprise Products Partners (EPD, $27, 7% yield), up 27% year to date. EPD has been the “best performer” in the [Forecasts & Strategies]( investment newsletter so far this year, Skousen said. Enterprise Products Partners is one of the largest publicly traded partnerships and a key North American provider of midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, refined products and petrochemicals. The company’s services include natural gas gathering, treating, processing, transportation and storage. In addition, Enterprise Products Partners provides NGL transportation, fractionation, storage and import and export terminals. It further offers crude oil gathering, transportation, storage and terminals, along with petrochemical and refined products transportation, storage and terminals, as well as a marine transportation business. I personally have owned Enterprise Products Partners since shortly after the 2020 stock market crash when I bought the stock as it started to recover. The stock has been trending upward since the end of 2021. Chart courtesy of [www.stockcharts.com]( [[You Might Not See This Again](]( Today is your opportunity to lay the foundation and make 2022 your best trading year ever. And VantagePoint traders who’ve already been using our A.I. forecasting tool are well on their way to building a stronger portfolio. Why? Because they can see the behavior and pattern of a stock, analyzed by artificial intelligence algorithms up to 72 hours in advance, giving them plenty of time to get out or get in. But if you haven’t seen our A.I. software yet, join our [FREE online training session]( to learn how to use it! [Click Here...]( Money Manager Picks One of Six Commodities Investments to Buy A seasoned investment professional told me that she likes farm machinery company Deere (NYSE: DE) to profit from agriculture. Michelle Connell, a former portfolio manager who now serves as president of Dallas-based [Portia Capital Management](, said she still likes Deere despite its 14% drop after it reported results last week. Michelle Connell, CEO, [Portia Capital Management]( Deere's key issues are supply-related, since demand for agricultural equipment remains strong, especially for the company’s machinery that is more environmentally friendly than its rivals, Connell continued. Deere is also focused on providing the farming industry with autonomous equipment, Connell counseled. Wall Street analysts expect Deere to have a better story and performance in the second half of 2022 and in full-year 2023. Connell cited the following to support her recommendation of Deere: -More than half its revenues come from large agriculture. -If the war in Ukraine continues, U.S. farmers will benefit from higher prices for their crops. -Increased agricultural profits mean that that farmers and farming corporations will be more likely to buy large, expensive farm equipment.  Deere has fallen back since its recent high on April 20, so investors should be able to purchase shares at reduced prices, Connell continued. Chart courtesy of [www.stockcharts.com]( Supply Chains May Improve as China Starts to Lower COVID Curbs China is easing its COVID-19 restrictions and it could allow goods produced there to start flowing normally again in the coming weeks. China’s lockdowns have affected an estimated 373 million people, including roughly 40% of its gross domestic product (GDP). [Disrupted supply chains]( have affected products such as rice, oil and natural gas. Shanghai, home to the world’s largest port and 25 million residents, has strained to unload cargo due to strict regulations that have caused [shipping containers to stack up](. Some Shanghai residents posted videos online to complain about needing food, even though government officials sought to block such public expressions of frustration. Chinese authorities also drew [public criticism]( for forcibly separating young children with COVID-19 from their parents to prioritize stopping the spread of a new, contagious subvariant of Omicron, BA.2. The variant also has been causing new infections in European nations such as Germany, the Netherlands and Switzerland. U.S. COVID Deaths Climb Past 1-Million Mark U.S. COVID-19 deaths crossed the 1-million mark last week and have climbed further to 1,002,726 as of May 24, [according to Johns Hopkins University](. Cases in the United States, as of that date, hit 83,501,455. America retains the dubious distinction as the country with the highest numbers of COVID-19 deaths and cases. COVID-19 deaths worldwide totaled 6,280,342 on May 24, [according to Johns Hopkins](. Cases across the globe have climbed to 526,664,642. Roughly 77.8% of the U.S. population, or 258,562,059, have obtained at least one dose of a COVID-19 vaccine, as of May 24, the [CDC reported](. Fully vaccinated people total 221,001,614, or 66.6%, of America’s population, [according to the CDC](. The United States also has given at least one COVID-19 booster vaccine to 102.9 million people, up about 500,000 in the past week. New data on so-called "long-haul" COVID patients released on May 24 reported that even though some symptoms improve others may persist, according to the Northwestern Medicine Neuro [COVID-19]( Clinic. Most of the 52 patients monitored in the Northwestern study reported “brain fog,” numbness or tingling, headache, dizziness, blurred vision and fatigue, even 15 months after initial diagnoses of COVID-19. The six commodities investments to buy are intended to profit from rising energy, gold and grain prices. Despite the market’s volatility, the highest inflation in 40 years, the Fed’s plan for further interest rate hikes to curb price hikes and increasing federal deficits, investors are finding profitable opportunities in energy, gold and grains. Sincerely, Paul Dykewicz, Editor [StockInvestor.com]( About Paul Dykewicz: Paul Dykewicz is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, Seeking Alpha, GuruFocus and other publications and websites. Paul is the editor of [StockInvestor.com]( and [DividendInvestor.com]( a writer for both websites and a columnist. He further is the editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul also is the author of an inspirational book, "[Holy Smokes! Golden Guidance from Notre Dame's Championship Chaplain](", with a foreword by former national championship-winning football coach Lou Holtz. Follow Paul on Twitter [@PaulDykewicz](. mailto:CustomerService@EagleFinancialPublications.com About Us: Eagle Financial Publications is located in Washington, D.C. – only a few blocks from the Capitol. Our products have been helping investors build their wealth for several decades. Whether you’re a long-term investor or short-term trader, you’ll find the right strategy for you, including how to earn more steady income to spend now, preserve and grow your capital to enjoy later, and whatever other investment goals you have. 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