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Despite today's rally our next guest think stocks are still too risky for your portfolio heap -- instead it.
To play it the more volatile commodities market we talk about risks.
Answer -- is founder and chief investment officer -- steel buying investments.
Spencer I thought this was a typo when I sought in the notes that we -- vouchers segment.
Are you really 80%.
Of your entire portfolio in commodities right now.
I sure men and it's such a misunderstanding.
Lend and -- that commodities are viewed as the more volatile of the that sue I I think it really is is transitioning I think that's changing now I think that all you have to do is look at the stocks just like you seven the last seven days and we've seen the largest over a thousand points on the Dow the largest move since march of 2009.
Meanwhile some of -- commodities never went through this huge decline we've had over the last two months and and -- like a share of Microsoft stock they have true supply and demand fundamentals on.
That's really attractive to me no one no one truly need to share of Microsoft stock option to survive.
We need blackberries as we found to survive they they've got and I -- -- lot but it for a big.
-- but let me get to this whole 80% commodities we have this gigantic 80% flashing on the screen -- And which way to play there -- soft commodities hard commodities which part.
Yeah that's the great thing is that you can diversify yourself and a lot of different ways I think that that precious metals have to have a piece of of -- one's portfolio I I've I've been suggesting around 15% there.
And I think that makes a lot of sense because you don't wanna be too large because that doesn't pay dividends so that's an important part that that you don't wanna lose side of but at the same time with all the carnage that we've had with the Euro.
And still the very question -- US dollar.
It's a great diversification there you can play evade the world growing demand for food and and invest in things like corn and wheat and soybeans.
There's so many great ways to -- the commodity space -- -- you out of the daily extreme moves in stocks that are just exhausting everybody including myself 20% as is exhausting -- -- stock -- Spencer is so much of that bad stuff has been -- -- the price of this market that perhaps the market itself is due for a take off.
Isn't it time to consider that possibility maybe take some your money out of the commodities put it back into the market.
Well here's the nice thing is that generally there is some level of correlation with commodities and stock so if we see stocks move a lot higher and you're gonna see the energy names and crude oil move higher you're gonna see gasoline move higher and and what a cool way to be able to hedge your own personal expenditures and gasoline.
You can buy purchase our Bob gasoline and so when you see that the prices at the pump going up.
That's something you can be excited about the kids are making money off of it rather than dismay that every time you drive -- The answer is a little problematic.
In that we are now and you just heard this from class -- -- about -- yesterday saying that.
Meaning the people you're encouraging to get -- right now because they really have no intention of taking.
Actual possession of the physical product here that speculators are gyrating these markets and then therefore they're a little more I guess at risk of of major swings that you really can't control -- understand.
You know I I understand the logic with that but at the end of the day what are people investing in stocks for the many other speculating and I think frankly I think it's a speculation.
Right and and and so maybe it's a longer term speculation but there's nothing to say that you can't hold commodities and a longer term oriented way and -- -- some ET apps that that you're able to hold that will give you that exposure they give you broad exposure to the commodity space we don't feel like that you have to be.
In and out back and forth but unquestionably in every market there is speculation that that causes volatility but.
I haven't seen any more volatility than what we've seen in stocks and certainly it's it's just harrowing we got to let you go but I have a quick question about what kind of commodities what about commodities have focus on durable -- like copper.
Right I think that those are great commodities that have their flashing some warning signs copper has really gotten hammered lately and it scares me that it may be telling us that the economy is not a strong and China's what we think.
Spencer patent good to see is Spencer that stuff thank you very much very.
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