A case for owning commodities when no one else is

Given the historical trend in late-2008 and early-2009 when managers were invested in other areas of the market, many likely missed the huge rally in natural resources stocks. From the market bottom on March 9, 2009, the Morgan Stanley Commodity Related Equity Index of commodity stocks grew 156% on a cumulative basis over the next two years. This is more than twice the return of the commodities futures index, the Dow Jones-UBS Commodity Index.

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Don’t miss the next potential rally.

In one investment, the Global Resources Fund (PSPFX) gives you exposure to all three of these underowned segments of the market. It’s a multi-faceted approach to energy and materials stocks across 10 distinct industries to aim for lower volatility and better growth potential.

We believe the commodity super-cycle continues, driven by emerging countries experiencing rising urbanization, increasing wealth and healthy GDP growth rates. What’s important for investors to remember is to build a diversified basket of natural resources companies actively managed by professionals who understand the seasonal and cyclical trends of these specialized assets.

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About the Author
Frank Holmes

Frank Holmes is CEO and chief investment officer of US Global Investors. This first appeared in his Frank Talk blog. For more updates on global investing from Frank and the rest of the U.S. Global Investors team, follow on Twitter at www.twitter.com/USFunds or like on Facebook at www.facebook.com/USFunds. You can also watch exclusive videos on what research overseas has turned up on the U.S. Global YouTube channel at www.youtube.com/USFunds.

US Global Investors, Inc. is an investment management firm specializing in gold, natural resources, emerging markets and global infrastructure opportunities around the world. The company, headquartered in San Antonio, Texas, manages 13 no-load mutual funds in the U.S. Global Investors fund family, as well as funds for international clients.

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