The Commodities Sector Is on the Move – Here’s How to Play It

Shah Gilani|October 18, 2023

With rising tensions in the Middle East creating a tailwind for oil prices, I’ve gotten a lot of requests this week asking what to do about oil, and by extension, commodities in general.

So, here’s the thing: pretty much no one invests in commodities for their appreciation potential long-term.

That’s because they’re so cyclical—some are so reliably cyclical, in fact, that their charts are basically a flat line going back years. Any real money you’re going to make off commodities is going to come from using them as a trading vehicle. This means either getting in for a short time and setting up tight stops to take profits from a sudden move up, or using options plays to catch a windfall from whatever leg of the cycle you happen to be on at the time.

Fortunately, it’s easier than it’s ever been for everyday investors like you to do these kinds of moves and add commodities to your arsenal of moneymaking assets, thanks to the rise of ETFs that give broad exposure to just about every commodity market you can think of. Want to trade oil? There’s the United States Oil ETF (USO). Want to trade gold? The SPDR Gold Trust (GLD) has you covered.

Given the geopolitical tensions, a lot of commodities are on the rise. It may not last long, so now is the time to act if you want the best chance at a decent payday.

Check out my video today for the best potential targets and how to play them:

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Make sure you keep an eye out for next week’s video, when I’ll be covering the banking sector as earnings season continues to move along. And as always, watch this space for more opportunities as we close out the week.