Daily Investment Tips

All indications are we will continue to see higher food commodities prices in 2011.

The consensus from Global Commodities Forum 2011 in Geneva (a meeting of commodity traders and senior officials) is prices point north.

Five factors driving food commodities prices in 2011

Poor weather - Poor weather in form of la nina and el nino continue to affect parts of Latin America, Africa and Australia. This is constraining supply.

Speculation - This time it is not just traders who are speculating, countries and buying and hoarding.

Geopolitical risks - Political crisis in places such as Ivory Coast will continue to impact on supply.

Rise of China & Other emerging Markets – As this countries economies expand, they have become major buyers pushing demand high.

2011 Global Economic Growth -  Growth is good but it is a double edged sword. As global economic growth accelerates in 2011, demand for commodities will push prices higher still.

All indications are we will see new highs in Cocoa, Coffee, tea, wheat, soyabeans, rice & corn

written by Constantine Njeru \\ tags: Cocoa Coffee, Coffee Tea, Commodities Prices, Commodity Traders, Consensus, Double Edged Sword, Emerging Markets, Food Commodities, Geneva, Global Commodities, Global Economic Growth, Ivory Coast, La Nina, Latin America, New Highs, Political Crisis, Rise Of China, Senior Officials, Speculation, Wheat

I was over at Amazon online market and browsed some of the books on market Psychology. I read the reviews and the following chart sums up the psychology of the market.

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Image source wallstreetfollies

Some of the books review on Market Psychology I read were

1. Art of Contrary thinking by Humprey Bancroft Neil

2. The Crowd : A study of popular minds by Gustva Le Bon

3. Speculation as a fine art of life by Dickson G Watts

4. Why You Win or Lose : The Psychology of speculation by Fred C. Kelly

5. The Nature of Risk by Justin Marris

written by Constantine Njeru \\ tags: Amazon, Art Of Contrary Thinking, Art Of Life, Bancroft, Books Review, Books Reviews, Crowd, Dickson G Watts, Fine Art, Fred C Kelly, Humprey, Market Psychology, Marris, Psychology Books, Risk, Speculation, Stock Market, Sums

2009 has to be the year of commodities. If you are a follower of trend following you must have made lots of cash by trend of gold, Silver & Platinum.

Look at this 2009 Price trends of this metals

2009 Gold Price Trend – up 34%

2009 Silver price trend – up 63%

2009 Platinum price trend – up 56%

2009 Palladium price trend – up an impressive 98%

If your mind was focused on the falling prices of real estate & non-starter stock market recoveries, you might have missed this commodities bull.

Should investors jump in? No! I don’t think just because this metal commodities have done well in the past they will continue doing well.

Strategy for making money in Metal commodities.

Whatever goes up, eventually comes down, one strategy is to focus on shorting the metals or sell the futures contract.

Strategy two, only for the seasoned pro, if you know how to play the speculation game keep buying the futures contract.

written by Constantine Njeru \\ tags: Amp, Contract Strategy, Follower, Futures Contract, Game, Gold Price, Gold Silver, Investors, Making Money, Metal Commodities, Metals, Palladium Price, Platinum Price, Price Trend, Price Trends, Real Estate, Silver Platinum, Silver Price, Speculation, Stock Market