In these volatile times, should you be investing in commodities? “Morning Call” took a look at both sides of the issue earlier today, with James Cordier, president and head trader at Liberty Trading Group, and Darin Newsom, senior analyst at DTN.
Cordier believes that the recent pullback in markets makes now the best time to get into commodities. “Commodities are hot right now, because of the growing global economy,” said Cordier. He believes that commodities to watch are cocoa, sugar and RBOB gasoline. “Average investors do not typically understand the leverage in commodities,” said Cordier.
On the other side of the debate was Darin Newsom, who said that that the recent volatility in the markets is making commodities less attractive. “Commodity markets are more risky than ever before,” said Newsom. He believes that the commodities to watch are corn, soy, sugar and natural gas, but warns that the more volatility there is, the more price swings will occur in commodity markets.