By Nigam Arora & Dr. Natasha Arora
Nigam Arora answers your questions about investing in stocks, ETFs, bonds, gold and silver, oil, and currencies.
As much as we would like to answer questions individually, it is simply not practical due to the large volume. When a question is asked by several subscribers, the question is answered here.
The Arora Report has continuously followed all major commodities across the globe for the last 17 years.
Long time members of ZYX Allocation have made a lot of money in commodities. At different times, there have been different ETFs in the Model Portfolios to make money from commodities. Here are the key points that will help answer your questions:
- The current ETF of choice in the Model Portfolios is PDBC.
- The PDBC long term chart is deceiving because along the way PDBC has paid very large dividends. These dividends do not show up on a typical price chart. Here are three examples of large dividends:
- On December 10, 2021, PDBC paid a dividend of $5.39.
- On December 31, 2021, PDBC paid a dividend of $1.76.
- On December 23, 2022, PDBC paid a dividend of $1.93.
- To understand how large these dividends have been, PDBC is trading at $12.86 as of this writing.
- Currently, the PDBC buy zone is suspended. To understand the suspension, consider the following:
- Commodity prices are not based on the U.S. economy but on the world economy.
- The largest consumer of commodities is China.
- As we have been sharing with you in the Morning Capsules and other posts, China’s economy is slowing.
- The slowing Chinese economy is reducing commodity consumption on a worldwide basis.
- As a result of slowing consumption, commodity prices have been falling.
The Plan
The plan is two fold:
- A new PDBC buy zone will be provided when the Chinese economy appears to hit bottom.
- There may be a signal on different ETFs representing only a single commodity if triggered by the system.
Stay tuned for a new signal.
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This post was just published on ZYX Allocation Alert.
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Nigam Arora
Nigam Arora is known for his accurate stock market calls. Nigam is a distinguished master of the macro. He is a popular columnist with over 100 million page views, an engineer, and nuclear physicist by background. Nigam has founded two Inc. 500 fastest growing companies and has been involved in over 50 entrepreneurial ventures. He is the developer of Theory ZYX of Successful Change Management and is the author of the book on Theory ZYX, as well as the developer of the ZYX Change Method for Investing.
Dr. Natasha Arora
Dr. Natasha Arora has significant expertise in investment analysis especially biotech, healthcare, and technology. Natasha is a graduate of Harvard Medical School followed by a postdoc at MIT. She has published several peer reviewed research papers in top science journals.
