7 Ways to Hedge Against Inflation
Jim Woods, June 24, 2009
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Inflation Hedge #3: Oil and Gas
Oil and natural gas are other great commodity inflation hedges. The raw material that fuels society must be had, and inflation can't really put a huge dent in the demand for these products, which means higher oil and natural gas prices.
In the oil space, a great investment choice is the United States Oil Fund (USO), an ETF designed to move in conjunction with the spot price of West Texas Intermediate light, sweet crude oil. On the natural gas front we have the United States Natural Gas Fund (UNG), a fund designed to track the movements of natural gas prices.
Really want to juice up your returns? Try trading options on USO.
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Sam Collins
2 Things Investors Don't Want to See Happen
If the S&P 500 fails to make a new high, it could create a double-top, which will probably have one of two negative outcomes.
While a correction could occur, the odds favor a big move up in the ProShares Ultra Russell2000 Value ETF (UVT).
Don't Get Burned by the Market
Investors who try to anticipate the market's next move may get burned. Your best course of action here is to be patient.
Leverage a Bet on the Nasdaq 100
The ProShares Ultra QQQ (QLD), which delivers twice the daily performance of the Nasdaq 100, hit a new 18-month high this week, and doesn't appear to be stopping.
The market will eventually break to new highs, but it will likely remain within the current narrow zone of support for several more months.
