Do you realize just how much commodity prices have crashed?
Commodity prices have gone down five years in a row, according to the Bloomberg Commodity Index.
Since peaking in 2008, commodities have lost an incredible two-thirds of their value.
[ad#Google Adsense 336×280-IA]But times seem to be changing…
So far in 2016, the Bloomberg Commodity Index is up about 10%…
Could the bottom be in? Could now be a good time to buy? It could be…
Commodity prices can soar just as powerfully as they can crash… From 2002 to 2008, commodity prices rose 170%.
Wouldn’t it be great to get the upside of commodities without any of the downside risk?
My friend Frank Trotter thought so… and he and his team at EverBank World Markets came up with a solution.
I caught up with Frank to get the basics of the idea…
Steve Sjuggerud: Frank, can you tell me the basics of your MarketSafe CDs?
Frank Trotter: The basic idea with all of our MarketSafe CDs is to give you the protections of a CD – like FDIC insurance and principal protection – but also to add some upside potential, too.
Sjuggerud: Your newest MarketSafe CD is focused on commodities. I think your timing with this CD looks pretty good, by the way. Can you tell me a bit about it?
Trotter: We hope our timing in commodities is good… We hear many clients feel strongly about the opportunities for commodity-value increases… But it’s nice to know that your principal is protected if commodity prices don’t go up, or if one of those black swans lands in your pond. Our new MarketSafe CD is based on the return of six separate commodities – gold, silver, copper, nickel, soybeans, and sugar. It’s important to note that you don’t get ALL of the upside potential…
Sjuggerud: I get it… If you are going to protect the investor’s downside risk, then you can’t give them all of the upside potential as well.
Trotter: Yes. That’s right. Instead, there’s a formula that limits the maximum that we can pay out on this CD. We explain it all, and give a few examples of possible outcomes, on the Term Sheet.
Sjuggerud: I will share a link to your website about the CD. The last commodity boom lasted from about 2002 to 2008 – or six years. What is the exact term of this CD?
Trotter: It’s a five-year CD. It’s called the “5-Year MarketSafe Focused Commodities CD.”
Sjuggerud: Great. Thank you, Frank.
Commodities are cheap, hated, and in the start of an uptrend this year… The timing could be just what we look for.
If your main concern is protecting your principal, but you would like to participate in some of the upside that commodities could provide in the next five years, consider EverBank’s latest MarketSafe CD…
You can check out the details on EverBank’s website here, or you can speak with a person at (855) 236-5173.
Good investing,
Steve
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Source: Daily Wealth