Investors Seek Commodities ETF as Food Crisis Deepens
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As investors search for a suitable rice ETF or commodities ETF to profit from rising food prices, news from Vietnam shows that the food crisis is from over.
According to Reuters: “Vietnam acted to quell panic over rice supplies on Monday, banning speculation in the market after a ‘chaotic’ buying binge in the Southeast Asian nation highlighted growing global fears about food security.
The move comes as protests spread through Africa over rising food prices, which aid experts have warned threaten to starve 100 people.
Rising food and grain prices have also caused thousands of investors to turn to the internet to search for an ETF for rice or a broader commodity ETF.
“Commodities, and soft agricultural commodities in particular, are not tied to stocks, bonds or currencies,” says The Sovereign Society’s Eric Roseman. “They’re not correlated to any of these markets directly. Therefore commodities provide a critical asset-allocation diversification strategy to traditional portfolios.
“Commodities feed on easy money or low rates, a declining dollar and most of all, falling production coupled by rising demand. That’s exactly what we’ve got in 2008.”
Back in March 2006, Eric was so excited about soft commodities he asked Jyske Bank in Denmark to create a guaranteed structured product to invest in a basket of agricultural commodities. Twenty-four months this fund is up 72%. To find out more and find out how to feed the world and your portfolio, click here.