Five Recent Factors Affecting Commodity Investment Decisions

/ / Commodities

What world events tell you enough about energy markets to make the smart move?

Saudi Arabia isn’t flooding oil market ahead of freeze talks
Oil prices surge as hedge funds reduce short positions
U.S. natural gas market rebalances on hot weather, low prices
Freight recovery offers hope for U.S. diesel demand in 2017
Will OPEC agree to freeze output in Sept? Source: Reuters

The amount of information to digest is daunting.   The numbers move towards proving your convictions or they begin to run away from you, emotions can run high and skew decisions right at the time it really counts.

Decadian commodity research takes in the myriad of factors and sifts through it all to find a small handful of investments to recommend.  This is where experience and specialized knowledge comes in play.  The many methods of trading often on sketchy knowledge and trend lines to take advantage of tiny movements has a way of eating up capital and not producing the profit one hoped for.

The less risky Decadian way is to filter through all the good trades that carry moderate risk and settle on the handful of outstanding trades that also have the lowest risk.  This may be four or five opportunities a year. When emotion is removed from buy/sell decisions, the investor is free and confident.

Time is actually on your side when the time is used for fact finding research instead of jumping from one trend to another.  It’s not the volume of trades hoping for profits to add up, it is the few extremely smart trades that bring a return based on solid research and intelligent timing.