1. Trial agricultural commodities and grain. Explain the leading drivers such as weather, population fleshing out, a falling dollar and habitual microcosm output.2.
A acceptable portfolio is diversified; it can consist of bonds, cash, equities and possibly some concrete estate. Buying agricultural commodities, specifically grain, can besides administer this diversity. Continuance in China and India is creating a work scarcity; on the contrary, there are a district symbol of ways to pay for grain.
Instructions
Scrutinize up two Replace Traded Funds (ETFs) that both invest heavily in grains on Yahoo! Finance by going to Yahoo.com and inputting the ticker symbol (DBA or MOO) into the Get Quotes box.
3. Conduct research on PowerShares DB Agriculture Fund (DBA) by pulling up the six month, one year and two year chart. Fundamental analysis can tell you what to buy, but technical analysis (or monitoring the ebbs and flows of a price chart) will tell you when to buy. Do the same thing for Market Vectors Global Agribusiness (MOO). See Resources for price quote links.
4. Ask your stockbroker for information on these two funds (and other funds that purchase grain). If you don't have one, open an account with E*TRADE or Scottrade. Both have low trading fees.
5. Choose a fund to pay for. Continue to monitor price fluctuations and what causes them. Once you decide on the right fund, make your purchase.
