Hot Beverage Millionaires...

In this edition of Bullfinder AI Insights, we take a deep dive into the recent price history of the often-overlooked Commodities…Coffee & Cocoa.

Yes, that’s right - Both Coffee and Cocoa are tradeable instruments. Meaning you can trade or invest in the price of Coffee and the price of Cocoa.

A seemingly insignificant part of our mornings could have earnt you more than significant returns over the past 5 years.

Here’s how…

Cocoa’s Meteoric Rise…

Believe it or not, Cocoa as a financial instrument is nothing new, trading for around $3,100 per ton back in 1979.

Historical Price Points since then…

• All-time Low: $707 p/t (Dec, 2000)
  

• All-time High: $11,722 p/t (Apr, 2024)

The period of most rapid advancement in value was between 2023 and March of 2024, where price moved from a range-bound $2,587 p/t, to a peak of $11,722 p/t.

This move represented an increase of +350% within the span of only 14 months.

The 6-Figure Profit Equation…

A significant amount of wealth was generated during this run in Cocoa.

But what did it take to make a 6-figure profit from this move?

Let’s take a look at the below ‘Cumulative Investment Approach’ scenario…

Summary Points:

• Initial investment (Jan 23) - $20,000

• Monthly contributions - $1,000
  

• Profit at Peak - $103,842.40

• Peak Position Value (Apr 24) - $138,842.40

Starting with $20,000 invested and making contributions of $1,000 each month to your position in Cocoa, from Jan 2023 to April of 2024, your position could have accumulated to over $138,000.

Not a bad result over a period of only 14 months.

This is the power of the Cumulative Investment approach within a breakout market.

What about Coffee? Is this Tradeable too?

The price of Coffee futures has also been on the rise over the past few years, making notable gains since 2019 lows.

Coffee’s Recent Price History:

• 2019 Low - $0.8800

• 2024 High - $3.2305

• % Gain (Aug 19 - Nov 24) - 250%

Cumulative Investment Approach - Coffee…

Although it didn’t move quite as aggressively as Cocoa, Coffee still provided investors with access to approximately 250% of upside between August of 2019 and November of 2024.

Scenario - With the green light from your financial planner, you decided to allocate only $10,000 as your initial investment in Coffee and made $500 monthly contributions toward your position.

Let’s see where Coffee could have taken you over this period…

Summary Points:

• Initial investment (Aug 19) - $10,000

• Monthly contributions - $500

• Profit at Peak - $59,185.04

• Peak Position Value (Nov 24) - $100,685.04

Not quite 6-figures in ‘profit’, but a 6-figure ending balance is nonetheless a significant result - This is a great example of ‘Staying Power’ within a breakout market.

These results are achievable.

And they’re achievable for you…You may just need to re-think and re-prioritize your saving, spending and investment habits.

Now that you know the power of the cumulative investment approach within breakout markets, and the significance of $500 a month…you may just think twice about how you spend and allocate your funds.

Modern affordability problems, call for modern solutions.

And we’re here to help - Stay ahead of the pack, with Bullfinder.ai

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Future Performance…

Please note, past performance is not a reliable indicator of future performance in any particular instrument. Additionally, no ‘current momentum’ readings have been provided for these two commodities within this article. Always seek advice from your licensed professional advisor before acting on any information contained within our articles, as your personal circumstances have not been taken into consideration, and such instruments may not be suitable. Please review terms of service on our home page for more information…

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