Stansberry Research’s Take on Commodities

Stansberry Research agreeing that commodities, such as marijuana go through exceptional booms and busts as they mature. Still, commodities have long been considered a good way to diversify an investment portfolio along with stocks, bonds and real estate. In fact, commodities are very cyclical. The reaction to supply and demand changes is often forces the market to add new resources and then readjust when it reaches equilibrium.

 

Commodities Discussed

The volatility of the commodities market causes it to expand and contract based on the surplus of demand and the shortage of supply. This also draws new competition and reduces the number of competitors, which increases the supply and then decreases it.

Resource markets or commodities, unlike other markets respond at a slower pace. Because these markets are intensive in both capital and time, consequently all that money spent (sometimes billions) to get started and all the profit earned causes business owners to hesitate when faced with a downturn in the market. Reaction to changes is very slow. Because supply and demand affect the price, the prices remain constant for an extended period as the changes to supply and demand are not corrected quickly.

 

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Stansberry Research guides the portfolio self-manager with actionable investment research. With over 175 years of experience advising the investor, Stansberry Research consistently advises over 500,000 worldwide investors how to strategically manage value investing, investing in energy, precious metals, alternative assets, income generating options, dividend investments and fixed income.

Porter Stansberry is the founder of Stansberry Research. Stansberry was the first American editor of the first English-language financial newsletter, the Fleet Street Letter. In 1999, he published the first publication, Stansberry’s Investment Advisory. Barron’s applauded Stansberry for their perfect prediction of the mortgage debacle of 2007-2008.

Stansberry’s twenty excellent editors visit business analysts and publicly traded companies to gather the safest and the most profitable investment information. The unique fact about Stansberry’s recommendation is that the company strives to put the ignored, unknown or unloved investments before their readers, giving them the opportunity to get on board as close to the ground floor as possible. Stansberry always commits all its franchises to the same goal of always giving its subscribers the best risk-to-reward insight.