CNBC Guest Blog
- Crescenzi: Claims Level Suggests End to Job Losses
- Schork Oil Outlook: Gas Bulls Pinning Hopes on Mother Nature
- Busch: The Debt-Interest Rate Paradox
- Busch: Markets Smell a Country Rat
- Schork Oil Outlook: Mission Impossible For The Bears?
- Losey: Asset Allocation At Retirement
- Farrell: Obama Hectored, Ignored and Restricted?
- Don't Dwell on Investment Mistakes; Move on, Like Buffett
- Hirschhorn: Greed...or Fear
- Schork Oil Outlook: Some New Hope For Nat Gas Bulls
MOST SHARED
- Kuoni CEO Sees Recovery in Travel Sector
- Dubai Struggles to Ease Debt Fears; Investors Rattled
- Gold Retreats from Record High as Dollar Rebounds
- China Unveils Carbon Target Ahead of Copenhagen
- Euro Shares Record Biggest Drop in 7 Months
- Hyundai-Kia Targets Rapid China Growth in 2010
- Fannie Mae to Tighten Lending Standards: Report
- Great Britain, No Longer That Great: Investor
- US Markets Bracing for Selloff On Worries About Dubai's Debt
- UK's Darling to Downgrade 2009 Growth Forecast
- 4 Thanksgiving Week Buys For Your Portfolio: Market Pros
- There's a 'Great Chance' For a Double-Dip Recession: Strategist
- Revenge of the Gangsta Nerds
- Will TCU See The "Flutie Effect?"
- Retail Earnings and Sales to Improve in Q4: Analyst
- Consumers Catching the Holiday Spirit
- It's Beginning To Look A Lot More Riskless
- Crescenzi: Claims Level Suggests End to Job Losses
- Hedge Funds Take Early Lead in Warren Buffett's 'Big Bet'
- US Markets Bracing for Selloff on Dubai Debt Worries
- Dubai Struggles to Ease Debt Fears; Investors Rattled
- US Dollar Falls to 14-Year Low Against the Yen
- UK's Darling to Downgrade 2009 Growth Forecast
- US Companies Already Moving on Curbing Emissions
- Fannie Mae to Tighten Lending Standards: Report
- Investing in Good Karma – and Making a Profit
- Retailers Should Believe in Christmas Miracles
- Bankruptcies Jump, Hitting Highest Level in Four Years
RSS FEED
Text Size 
Michael Yoshikami
President & Chief Investment Strategist
YCMNET Advisors
As we face future inflation and a restart of global growth, investing in commodities makes sense now more than ever. Commodities you see are one of those rare assets that can be profitable in a variety of conditions.
If inflation occurs, commodities will likely do well as prices rise. Higher deficits are making inflation a more reasonable outcome than might have been the case in previous years. With so much stimulus money floating around, the pressure on prices is all but inevitable.
If global growth returns, the demand for raw materials including metals, food products, and energy will rise. The price of these assets already face upward pressure. China's recent appetite to purchase Australian mineral producers shows their understanding of the need to secure sources of raw materials to fuel their continuing economic expansion. China knows that growth requires commodities.
As global populations rises and land available for the production of food decreases, the world's consumption of oil [US@CL.1
Loading...
()
], agricultural products, metals and minerals, will only go higher. It's a fact that a growing middle-class eats more and with the world standard of living slowly edging upwards, commodity assets, especially in agriculture, will benefit from higher demand.
More From CNBC.com
- Oil on the Roil — Handle with Care
- Gold — Long Term Prospects Shine
- Jim Rogers Buys Land, Starts Farming
- Slideshow: The 10 Hottest Commodities of 2009
Some, including Jim Rogers, believe that commodities should be the primary asset in your portfolio strategy. Not all agree with this position but very few believe that an investment plan should exclude commodities.
In an inflationary or global growth environment, commodities should be a part of your investment strategy. The environment for the next 10 years requires this asset class; it's not just stocks and bonds anymore.
___________________
Michael A. Yoshikami, Ph.D., CFP®, is Founder, President, and Chief Investment Strategist of YCMNET Advisors, Inc., a registered investment advisory firm (www.ycmnet.com). Michael oversees all investment and research activities of YCMNET. He is a respected lecturer speaking frequently on market issues, tactical asset allocation, and investment strategy. He appears regularly on CNBC and CNBC Asia and can be reached directly at .
Data is a real-time snapshot *Data is delayed at least 15 minutes