Best Stocks for 2008: Bet on commodity bull with DB Commodity ETF (DBC)

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the main financial newsletter advisors asking for their favorite stocks for the coming year. that write-up is one of 100+ ideas in the Best Stocks for 2008 report.

“The commodity bull market has a lengthy way to run, powered by explosive growth in the BRIC (Brazil, Russia, India, China) countries,” says Sean Broderick, resource stocks editor for Money & Markets.

“My top conservative pick to play the broad commodities bull market is the broad-based exchange-traded PowerShares DB Commodity Index Tracking Fund (NYSE: DBC).

“As an ETF, it is like

a mutual fund. However, ETFs generally have lower costs than a mutual fund and you can buy and sell an ETF all through the day, whereas a mutual fund trades once a day.

The PowerShares DB Commodity Index Tracking Fund has a enlarged name but a simple view — the fund invests in commodities: crude oil, heating oil, aluminum, gold, corn and wheat. DBC invests in that basket of commodities by purchasing futures contracts. It rebalances annually to 35% crude, 20% heating oil, and 10% to 12.5% of the other four.”

Original post by Steven Halpern

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