Commodities are attractive at this market juncture as a way to reduce the overall correlation of your portfolio to the market. During periods of market turmoil, stocks will tend to follow market fluctuations. Exposure to precious metals, energy and interest rate products offers greater opportunities for diversification and flexibility.
In general, I expect interest rates on U.S. debt to rise over the long term, and I am bullish on precious metals. For assets like oil, natural gas and agricultural commodities, I think it makes sense to keep a shorter-term and more nimble orientation.
Keep reading to get two commodity option trades I like right now.
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