Review the 2010 investment result, the growth has came after Aug, when QE2 announced. Most of the commodity is rocket climbing. However according to the history of 1930, after the depression, the commodity will start a very long time of uptrend.
The economy is not on right track on both US and Europe. However the emerging market became the focus for the global investment.
Based on the review of the history and the money supply. I still believe, the biggest return will come from commodity: GOLD, SILVER, Food etc. The reason are
1. High inflation
2. Right now, the US and EU economy is not on track but the inflation is on uptrend and it is hard to control. When the US and EU economy will come better, the demand of industry commodity should be increase. Thus, that come the real growth of commodity
3. China government can control its own economy and equity international. However commodity market is a global investment vehicle. The ownership of the commodity is both political and economic issue.
4. The inflation is not easy to manage. People will be more concern on their daily necessary product. Therefore more price conscious and it will impact the high consuming product like automobile
In 2011, since the little of bullet, I will allocate the resource to commodity,
Gold - GLD
OIL- UCO
SILVER- SLV
GLTR- Basket of commodity
JJA - Agricultural
REMX- Rare Earth ETF
AAPL
JPM
To keep track the market and review one year later, I stated the graph for record
Comments