Commodities: What Is the Smart Money Doing?

Back in May, the world's largest

commodities trader, Glencore, raised $10 billion in its public offering. As a result, we can now get some interesting insight from the company's mandatory disclosures.

First of all, Glencore continues to grow like a weed. In the first half of 2011, profits soared 57% to $2.45 billion and revenues increased by 32% to $92.1 billion. The company generates revenues from three main categories: energy, agriculture and metals/minerals.

So will the momentum continue? Glencore thinks so. All in all, demand remains robust, even though there are signs of a global slowdown. Actually, Glencore likes the prospects for commodities like copper, nickel and aluminum. Although, the company believes that volatility will remain high.

And the good news is that Glencore thinks that the valuations on publicly-traded resources companies are fairly attractive because of the recent plunge in global equities markets.

True, you cannot purchase Glencore shares on US markets (the company is traded in London). But for investors who are looking to get exposure to commodities, there are certainly good values.

Which ones? Well, if you want to invest in copper, a good choice is Freeport-McMoRan (NYSE:FCX) as well as the Global X Copper Miners ETF (NYSE:COPX). And as for aluminum, there is always Alcoa (NYSE:AA). Or you can take a look at the PowerShares DB Base Metals (NYSE: DBB) ETF, which has exposure to futures contracts on aluminum, zinc and copper.

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Authors: Commodities - Yahoo! News Search Results

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