The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
By Kevin McElroy
NEW YORK (
TheStreet) -- Is this cheap commodity going to be the next huge winner?
|The next big thing ... eventually.
Twelve years ago, at the infancy of the current bull market in gold, a small group of folks started buying up gold and gold securities.
They didn't ring a bell or tell their friends. They probably felt a little foolish doing so. They might have felt a little crazy.
Gold had been in a two-decade bear market.
Today, there's a commodity that's commonly used, extremely cheap and arguably in a 50- or 60-year bear market.
It's a commodity that people probably don't even think about as very investment-worthy -- but it's completely vital to the modern world. Significantly more important than gold even.
And I'm going to tell you how to invest in three companies involved in this commodity today that should see strong gains in the coming years, as well as solid dividends in the meantime.
Is buying now too early? I can't say for sure. But what I can say is that a bull market in this commodity is as inevitable as the tides. Perhaps literally so...
In case you haven't guessed, I'm talking about water.
I'm sure you've heard lots of claims about freshwater resources being decimated in California, Florida and certainly Asia.
According to the World Economic Forum
, "analysis suggests the world could face a 40% shortfall between water demand and available freshwater supply by 2030. Many countries are already extracting groundwater faster than it can be replenished (Mexico by 20%, China by 25% and India by 56%.)"
So, I don't believe that we'll face these types of shortages. Water is way too important. To account for the difference, you, me, the Chinese and everyone else will pay through the nose to get access to fresh water. What other choice do we have? I might be able to ride my bike to work if gasoline gets too expensive, but I'll sell my bike and my car and probably my gold and silver in order to keep the fresh water flowing to my house.