In terms of the large international commodity firms, Glencore is the elephant in the room. It is one of the world’s largest producer of copper, nickel, zinc and aluminum; Another asset is a trading firm which seemingly was a license to print money. In addition the company has a $ 30 billion debt which needs to be serviced. When China was seemingly buying more and more raw materials at higher and higher prices, Glencore was a very profitable company, with the slowdown Glencore will pay the interest on its debt and earn little else. This has resulted in the stock price falling, similar other commodity company stock prices have fallen. In one sense the news is bleak, if you owned the shares directly. In another sense, there is opportunity to be had.

Linking to dividend paying stocks, in all sectors of the commodity business there are still companies that will continue to earn a profit (albeit a smaller one than in couple years ago) and be able to pay dividends. The shares will have fallen as commodity prices are still in a downfall and have not begun to pick up. The way to earn wealth is to begin your homework on what companies are the best of the downfallen. Then begin to follow those companies with an eye to begin buying them when the market and you see there is an upturn in the commodity prices. When the time has changed over the next few months buy the best of the breed or the best stocks and ride the cycle until it is time to move onto another sector or alternative. Your asset values will grow, ideally there will be a dividend payment along the way, partly because when the dividend payment is under pressure, you know it is time to seek other alternatives.

There are more questions than answers, till the next time – to raising questions.