ETF Expert

For those who have argued that the commodity bull run would end alongside a global recession, the evidence seems pretty slim. In spite of the Russell 2000 (IWM), the Nasdaq Trust (QQQQ) and the S&P 500 SPDR Trust (SPY) falling 8%-12% YTD, you have exceptional strength in "stuff."

The easiest way to check just how strong all commodities are is with the performance of the iPath AIG Total Return Commodity Index Fund (DJP). In January alone, it rose 4.1%. Moreover, through the first half of February, it has surged another 3.4% AND it has hit fresh 52-week highs.

It’s not just oil at $95 per barrel either. You have gold pushing through $925 per ounce as well as silver reaching new heights. Agricultural products from wheat to soy continue to flourish. Industrial metals including steel, animal livestock… you name it, spot commodity prices keep going higher.

Granted, it’s possible that demand for "stuff" could be shut down by pronounced fears of a worldwide economic recession. But if that fear were palpable, we wouldn’t be anywhere close to new records for DJP across the board.

Even technicians have to be impressed with the commodity bull market. With the vast majority of stock assets below short- and long-term moving averages, here’s an investment that’s above both!

I have devoted a great deal of energy (pun intended) to explaining the benefits of allocating to the iPath AIG Total Return Commodity Index Fund (DJP). Total commodity exposure has offered true diversification, capital appreciation, as well as safer anchoring during volatility.

• See "What to Do With a Sideways Market" for more on safe harboring.
• See "Total Commodity ETN: Low Volatility, High Sleep Factor" for more on genuine diversification.
• See "When a Chart Can’t Tell A Story" for more on the 10-year 7.6% annualized gains for commodities.

Although I am clearly partial to a total commodity approach, there are those who get caught up in single commodity ETFs. And there are a few that deserve attention for having recently hit 52-week highs.

The iShares Silver Trust (SLV) has flirted with its highs this week, but has pulled back a "skohsh" at the time of this writing. Nevertheless, we’re talking about 40% gains since September 2007 alone!

And the biggest winner of them all? The PowerShares DB Agriculture Fund (DBA) has managed a 50% return in one year’s time. It too rests at its highest point.

Disclosure Statement: ETF Expert is a web log ("blog") that makes the world of ETFs easier to understand. Pacific Park Financial, Inc., a Registered Investment Advisor with the SEC, may hold positions in the ETFs, mutual funds and/or index funds mentioned above. Investors who are interested in money management services may visit the Pacific Park Financial, Inc. web site.