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The Next Big Thing in Commodities: Strategists

The next surge in the bullish commodities market could come from the joint venture of rival miners Rio Tinto and BHP Billiton, both of which provide excellent investment opportunities, said Greg Smith, managing director for the UK at Fat Prophets.

"I think all and all, this rally that we're seeing in commodities —whilst there'll be a number of corrections and pullbacks along the way — I think it's set to go on for many years yet," Smith said.

While Smith said investors still need to act with caution because of the recession, both companies have long-term potential — with BHP holding an edge, Smith said.

  • David Faber Reports on the Rio Tinto-BHP JV

Nicu Harajchi, CEO of N1 Asset Managment, agreed that commodities are the safest bet, even as the market continues its volatility. While investors have begun seeing less bad news in the financial markets, they are still far off from seeing actual good news, he said.

"I think that investors are seeing this as being the only place at the moment for the long-term because...people will need commodities," Nicu said. "I think that energy, oil and natural gas [are] far off the prices we're going to see in the next two to five years."

Smith's Recommendations:

Gold

Oil

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Nicu's Recommendations:

Oil

Natural Gas

Energy

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CNBC Slideshows:

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CNBC's Companies in the News:

Rio Tinto

BHP Billiton

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Disclosures:

Disclosure information was not available for Harajchi, Smith or their companies.

Disclaimer

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BAC
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BHP
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WMT
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