This earnings season continues to be treacherous for investors. We’ve seen blue-chip global companies such as Coca-Cola, Johnson & Johnson, General Mills, Phillip Morris and Nike complaining about the impact of a strong dollar on their revenue.
We have also had companies announcing massive layoffs, including:
- Intel plans to cut 12,000 jobs.
- Boeing said it could cut up to 8,000 jobs this year.
- Lockheed Martin recently cut 1,000 jobs.
- Nordstrom plans to cut 400 jobs.
- Freeport-McMoRan will slash 25% of its oil and gas workforce — 325 jobs.
- Coach announced 300 job cuts.
The growing concern about the health of American companies underscores the importance of having your portfolio diversified so that it includes exposure to more than just stocks. It’s important to also have some exposure to commodities.
One easy way to add commodities exposure to your holdings is through EverBank’s MarketSafe® Commodity Solutions CD.
This innovative product offers zero risk to your deposited principal. Also, by buying one of these CDs, you’re receiving automatic exposure to the potential gains of a number of key commodity products.
The MarketSafe® Commodity Solutions CD has no annual percentage yield or periodic rate of interest. Instead, the U.S. dollar-denominated CD is indexed against a weighted basket of commodities — crude oil (West Texas Intermediate), gold, silver, copper and nickel, as well as three agricultural crops — sugar, soybeans and corn.
The CD has a five-year term. So at the end of each year, EverBank calculates the interim annual performance of these eight important commodities (subject to a 70% cap per component at each annual pricing date).
The highest payment after the five-year maturity term would come if we see a combination of annual price gains among the CD’s weighted commodity components, capped at 70%.
What if that doesn’t happen? You’ll still receive 100% of your principal back at maturity. (Plus, because EverBank is a member of the FDIC, your deposit is insured up to $250,000.)
So you can see why EverBank’s MarketSafe® Commodity Solutions CD could be a strong candidate as a place to park some of your hard-earned cash. Your principal is protected, plus it could also be potentially profitable.
We have a paid marketing relationship with EverBank, but either way, this product is one that you’d want to hear about as we navigate an uncertain financial landscape.
Sr. Managing Editor, Sovereign Investor Daily