Investors are always looking for the next big thing. When they find it, the opportunity can pay out fast, or it can take a couple years to develop. The trades that work out over the longer-term are usually referred to as a market trend.
You might be shocked to find out that you missed out on one of the biggest hidden trends over the last year. I'm not talking Apple (NASDAQ:AAPL), Tesla (NASDAQ:TSLA), or even Bitcoin. While those are all very well-known outperformers, what I'm bringing you today was a big secret up until recently. This hidden treasure resides in the often-overlooked commodity asset class, in a segment that you might not have known existed.
Many investors think you can only make money in commodities through futures contracts and options. They also mainly think of investing in gold or oil. So it's likely they wouldn't have considered a simple ETF trade in what turned out to be a super-hot commodity: Palladium.
What the heck is Palladium???
Palladium is a chemical element that is easily found as "PD" on the Periodic Table. The silvery-white metal is used in catalytic convertors to contain engine emissions, by turning them into water vapor or carbon-dioxide. New pollution control innovations for catalytic convertors in cars has helped keep the demand for Palladium strong.
With governments mandating emission regulations all over the world, the need for palladium continues to accelerate. Now add in that the element is very rare, the demand is weighing on supply, which has caused the price to skyrocket.
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This Simple Little-Known Buy Could TRIPLE
Don't miss the Sunday deadline to start Zacks' new approach to the overlooked, skyrocketing potential of commodities investing.
Now you can get in the easy way. No futures contracts or option moves - just stocks and ETFs.
In fact, Zacks expert Jeremy Mullin is about to trigger the portfolio's first move. He predicts it will exceed the breakneck growth of palladium which more than tripled in the last 3 years.
Important: Your chance to access this new portfolio ends midnight Sunday, February 16.
Be First to its First Buys >>
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Let's talk numbers
Palladium's move started a few years back, but it really didn't take off until late 2018. The Palladium ETF (ticker PALL) was trading at $75 at the start of 2017, when Palladium's actual price was at $750. Since then we have seen a 217% run, with the ETF making 2020 highs at $237.99, or $2427 per ounce. In 2020 alone, the ETF has gone parabolic, already making an almost 30% move higher from the beginning of the year.
The fun has likely been had in Palladium and the trade now seems exhausted. There might be some more meat on the bone as traders scramble to cover short positions, forcing a short squeeze even higher. However, the big portion of the move is likely over as the market starts to normalize. You might have missed that big move, but make sure you don't miss the next commodity opportunity.
How to take advantage of the next big trend
I see a similar move forming for another commodity, one that could be a top performer in 2020. There are comparable supply/demand issues in this particular segment that makes it very compelling over the next few years.
Recently, commodities and some stocks have seen big pullbacks due to a systematic risk: The Coronavirus. This tragedy has created an exceptional opportunity for those interested in commodities, one of the hardest hit asset classes over the last month.
When the environment normalizes, I expect bullish trends to resume, especially in certain commodity markets as China comes back online.
The segment I have identified is on sale right now! And when its trend resumes, we could see the same kind of results in 2020 that Palladium showed investors in 2019.
You're invited to take part in the brand-new portfolio service I'm directing, Zacks Commodity Innovators.
I will post the single best move to make when the markets re-open after the Presidents Day holiday, Tuesday, February 18th.
No need to get involved with futures contracts or complicated option moves. Commodity Innovators will only recommend easy-to-trade stocks and ETFs.
Our first selection will be an ETF that allows investors to enter a market that most aren't even aware of and have never be exposed to. Make sure you don't miss the opportunity to get in on the hottest commodity trend of 2020.
I'm also getting ready to post 2 other moves to take advantage of the Big Rebound that lies ahead.
This new portfolio will capitalize both on breaking news and on developing long-term trends. We will minimize our risk without being exposed to the futures market, while keeping the same potential rewards. With the Zacks Rank working for us, we will have a plethora of ETFs and stocks to choose from that will allow us to capture this profit potential.
We aim for short-term jumps of +20-40% and also ride trends that could carry us for months and years to gains of +100% and more.
Important: Please note that the number of investors who view these moves will be restricted and the deadline to gain access is coming up fast. The portfolio closes to entry Sunday, February 16.
Be sure to look into Zacks Commodity Innovators right now >>
Good Investing,
Jeremy
Jeremy Mullin is a technical expert with 15 years' experience pinpointing the best times to buy and sell commodities. He is the editor of Zacks' newest portfolio, Commodity Innovators.
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Zacks Investment Research