You can count on one thing for certain in the markets: Commodity prices will soar and crash.
Investing in this asset class isn't for the faint of heart... because massive price swings are features, not bugs, of owning commodities.
Right now, though, this is a good thing. Commodities are the ultimate cyclical asset. And I believe the next upswing is already underway.
If I'm right, then getting in now could mean massive profits over the coming years, based on history.
Let me explain...
You see, commodities have had four major bull markets since the early 1970s.
The first of these booms started in 1970. It was a relentless move higher, fueled by the inflation of the 1970s. It lasted four years and led to more than 400% gains. Take a look...
Here's the thing, though... Cyclical assets like commodities boom AND bust. And commodities suffered a devastating bust after this boom.
From 1974 to 1977, prices fell by more than one-third in just a few years. It was a brutal decline. But it helped set up the next commodity bull market...
Prices soared from 1977 to 1980. This time, the commodities index jumped more than 150% in a little more than three years.
Importantly, some individual commodities jumped even more than that... Silver soared nearly 700% from trough to peak during this period. Sugar prices jumped more than 500%.
Investors who positioned themselves correctly made massive gains in this stretch... But they needed to know what to buy, when to buy it, and when to get out.
Because like we saw with the first example, commodities entered a major bust after this boom...
This time, commodities fell around 30% and became "dead money" for years. If you'd invested at the 1980 peak, you wouldn't have broken even until 1985. Ouch.
Then, in 1986, the next boom got underway... It was one of the most powerful we've seen. And as you can see, it was a one-way march higher...
That's nearly 300% upside in a little more than four years. And for a broad index, those gains are even more impressive... We're talking about a collection of a few dozen commodities, from oil to copper.
If you narrowed your focus, the right investments soared dramatically higher in this span. Certain individual commodity companies soared 1,000% or more during this boom.
But again, the bust always follows. After their rise through the late 1980s, commodities spent nearly a decade going nowhere... They eventually lost a third of their value again.
Imagine that... owning an asset for nearly a decade and LOSING money.
Again, that's why you need to buy at the right time – after a bust. And the bust of the 1990s set up one of the greatest booms in history...
Instead of a lost decade, we witnessed a near decadelong boom in commodities from 1998 to 2008... ending in gains of nearly 500%. Take a look...
Now, prices fell more than 25% a couple times along the way. Still, that volatility was a small price to pay for the long-term gains. Commodities spent nine years soaring... And investors who took advantage profited handsomely.
It might've been the best commodities boom we've ever seen... until now.
Why is today's opportunity so good?
Well, like I showed yesterday, commodities crashed as much as 80% in recent years.
Simply put, we've never seen a commodity bust like the one we're coming out of. Prices have never fallen this far... for this long. We've never seen a boom start off such a low base.
All of that means that the coming boom could be bigger than any we've ever seen before.
That's why I'm hosting a free live event, tomorrow night at 8 p.m... the 2018 Commodity Investing Summit.
I plan to discuss all the big ideas surrounding the coming commodity boom: why now is the time to buy... why this boom could be the biggest ever... and most importantly, I'll share one of my favorite ways to profit.
We're going to share all the details investors need to know right now – and it'll be a lot of fun too. I urge you to join us.
Good investing,
Steve
P.S. The investment I'll share tomorrow night is the absolute best way I know of to own commodities. And it has a history of massively outperforming "typical" commodity investments. I urge you to attend so you can get the full details. Again, it's simple – just tune in tomorrow night at 8 p.m. Eastern time. You can sign up for free right here.
Further Reading
"When commodities boom, savvy investors have a chance to make massive returns," Steve says. And one of those opportunities is starting now... Learn more here: The Next Big Bull Market in America.
"What's a better bet today... stocks or commodities?" Steve writes. "Which has a better chance of leading to outsized returns?" Yesterday, he revealed the answer... Read more here: You Can Buy This Asset Class at 1990 Prices.
Commodity prices could soar over the next several years. And my colleague Dan Ferris believes this royalty company offers triple-digit upside as commodities take off...
A BETTER WAY TO TREAT DENTAL WOES
Today, we're looking at a company that's disrupting the orthodontics market...
For many, achieving "the perfect smile" takes years of work. Traditional braces used to be the only game in town... But they can be uncomfortable and unappealing. Now, "invisible" orthodontics is changing the game. This technology uses clear, custom retainers to gradually shift patients' teeth over time...
The leader in this space, Align Technology (ALGN), produces the popular Invisalign system. Patients prefer Invisalign's subtle appearance. And since the retainers can be removed at any time, it's more flexible than traditional treatments. Dentists and orthodontists have used Align's products to treat more than 5 million patients to date. And they're still gaining popularity... Align recently reported first-quarter revenues of $436 million, up more than 40% from the same quarter a year ago.
As you can see below, Align's stock is soaring. Shares are up more than 140% over the past year. As Invisalign continues to gain popularity over traditional braces, expect this stock to continue higher...
