How Bad is it in Commodities? Bad…

To get an idea of how bad things are in the natural resource space, look no further than Brazil…
More than a year ago, we urged readers to stay cautious toward the commodity sector. Back then, commodities had enjoyed a huge rally… But as we noted, Brazilian stocks were “breaking down” to new lows.
Brazil is one of the ultimate destinations for investors who want exposure to commodities. Its state-operated oil company Petrobras has found a series of giant offshore oilfields in the past decade. Brazil is a major producer of agricultural commodities like soybeans, cattle, corn, coffee, and sugar. It’s a major producer of iron ore. Much of this production heads to China, Brazil’s largest trading partner.
As you can see in the two-year chart of the Brazil investment fund, our warning was well-timed. Brazil has been hammered since its 2011 peak. The rally that began early this year has reversed with a huge correction… The fund now sits at a 52-week low. China is slowing… which has hammered commodity-producer Brazil.


Editor’s note: Over the last month, Amber and Brian have made 10 trades using a safe, high-income option strategy. Every trade is showing gains… averaging 7.5%. They’ve put together a video to explain how to use this strategy yourself. You don’t have to spend a dime to access what they’re calling “our greatest wealth secret.” Click here to view it in full.