punk_ash

Commodity Index Funds: The Good, The Bad and The Ugly

We live in a bizzaro world. All pundits are screaming about commodities. The financial firms have flooded the markets with commodity ETF and ETN. No one will tell you that most markets are in general in contango, especially energy due to storage issues. That means a continuous bleeding of your portfolio as you are paying someone to store oil and gas.

If the spot price stays flat or about flat, that ETF will start going to a BIG 0. Check out the performance of OIL, UNG, USO.

Investing in these is in itself a full time JOB. A long term investor is better off spending on education, pay off the house, not borrowing money@25% from credit cards. If you are old, buy annuities.

I think investing in the commodity companies is much better, they just might give you a dividend rather than charge the contango fee.

Yes, I have invested in commodity ETFs and made some lost some, but I will STAY the HECK away from commodities.

Exclusive Interview with Jim Rogers: Inflation Is Coming

Wow, you mean to say that you have the crystal ball for everything but commodities.


On Jan 15 02:31 PM Larry House wrote:

> I hold Jim Rogers' opinions in high regard. He is quite blunt and
> cock sure, which bothers some, but I think he is usually right on
> has a good handle on the "big picture." I agree with the outlook
> for inflation, but it is impossible to say when. Even Rogers said
> that. Going into commodities now could beat a person to death waiting
> for the inflationary pressures to set in. I think investing to capture
> the rise of inflation will be THE major play at some point in the
> future; there is just no telling if it will come late '09, '10, '11
> or later.

Exclusive Interview with Jim Rogers: Inflation Is Coming

Its not just China, its all over Asia, just came back from India. Asians are working very hard, just like US did in early and mid part of the 20th century.

They will become complacent when they get rich, but for the next 50 years, Asian equities are the place to be. Commodities will rule until alternatives come along and some commodities just do not have an alternative, things like Steel

Why I Don't Own Commodities

Give me a break, you invest in companies, look at the SP500 return over the last 10 years, Vanguard chief argues in favor of index investing and you are saying the opposite, I agree with neither. Its going to be a ver bad time to be in equities. You are underestimating the problem in lose monetary policy around the globe, that is the main reason for the commodities run...