Commodities and Hard Assets

[gfp927z]

From Dew's board - >>> Re: Commodities/natural-resources/inflation hedges


https://investorshub.advfn.com/boards/read_msg.aspx?message_id=163785004


My commodity/natural resources holdings are mostly legacy positions where the cost basis is too low to sell; these include CVX, RDS, and WY (by way of PCL).

As an integrated wood-products company, WY is not a pure natural-resources play the way PCL used to be, although its timberland assets may offer some inflation protection. On the other hand, WY shares may flounder in an environment where interest rates are rising to the extent that investors consider the stock as a bond proxy.

I have what has become, through price appreciation, a very large position in CLF. However, following its acquisitions of steelmakers AK Steel and Arcellor Mittal USA, CLF is an integrated steelmaker rather than an iron-ore mining company, so it’s a stretch to think of the new CLF as a commodity/natural-resources play.

In the agriculture sector, I’m long DE, which benefits indirectly from higher commodity (i.e. crop) prices. I commented on DE’s business model in #msg-161984736. Regards, Dew

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