Dow Jones-AIG Commodity Index Falls to Five-Year Low

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The Dow Jones-AIG Commodity Index (^DJC), which is composed of futures contracts on physical commodities according to the weights in the bottom graph above, fell to a five-year low of 125.93 Tuesday, the lowest level since November 2003 (see top chart above). From the July peak, the AIG index has fallen 47%, the largest four-month percentage decrease in the 48-year history of the AIG going back to 1960.

Comments

[CLH:]

The inflation worriers seem to have quieted down. (except for Luskin). I really feel sorry for the gold buyers. When their money is gone, they will also quiet down.

2008 Nov 12 10:31 AM

[ValueInvestor:]

Of course the DJ Commodity Index is down a tonne. All the Commodity Indexes are now so heavily weighted to energy prices they had nowhere to go except straight down. They're a useless index IMO because its essentially just an energy index. Someone that wants broad diversification in commodities can't get it with these.

The old Knight-Ridder CRB index was the best one around before Reuters-Jefferies got their hands on it and changed it into another energy index. It was 17 commodities EQUALLY weighted.

2008 Nov 12 12:06 PM

[Lisa White:]

Commodities market is always changeable. Actually gold buyers may face difficulties at this time. The DJ Commodity Index is down....but we are all know that do not only choice a market. The problems may be solved.

2008 Nov 12 10:00 PM