Aaron Task welcomed guest, Chip Hanlon onto Cramer's
"RealMoney" radio show Thursday. Task, co-executive editor of
, is filling in for Cramer this week.
Hanlon is a contributor at
and president of
Delta Global Advisors
, a full-service investment and advisory firm, with a particular expertise in foreign markets and nondollar asset classes.
When Task asked Hanlon about his opinion on the commodities market, Hanlon said that he agrees with Task in the long term.
The commodities area is a bullish story that is based on rising demand from the exploding Asian economy, Hanlon said. However, short-term, the commodities story has gotten complex, he said, adding that it is no longer simple in that all commodities' prices move together.
Commodities-related stocks in general, are likely where the easiest money has been made, Hanlon said. Although now, the story for these stocks is fundamentally getting a little more challenging.
The best of the fundamental commodities is oil, he said. Oil and energy are big costs for any mining company, and a lot of analysts have forgotten to factor in the cost of production when talking about a mining company, Hanlon said.
Thus, the story is a little trickier for many of these mining companies than it was a year ago, Hanlon said.
"Should we be focusing in energy stocks?" Task asked.
Hanlon said yes, and added that he believes the energy sector is still interesting in the long term, especially oil. One interesting way to go about it is the energy trust, or the Canadian energy trust in particular, he said.
Two of these trusts that trade in the U.S. are
, Hanlon said.
U.S. Global Investors Global Resource Fund
, (PSPFX) as the best performer in the commodities sector in the past five years. He said it is a great way to get involved in the commodity space without owning an individual stock.
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Aaron L. Task is the co-executive editor of TheStreet.com. In keeping with TSC's editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet.com. He also doesn't invest in hedge funds or other private investment partnerships.
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