| |What is commodity investing all about: 1. The curves and carry – backwardation/contango (inventory). Given the cash market for commodities is often not available for investing, the primary market for investors in commodities is the futures. Consequently, the shape and dynamics of the futures curve is a dominant factor for longer-term investing. Investors cannot think of commodity prices in isolation, no different than investors can think about bonds without looking at the current yield or equities without dividends. Carry in commodities is as important as any other asset class. This is the cash return on the investment and the premium … Read more Commodity Investing – What is it all About?
| |Liquidity is never present when you need it. This truism is especially the case when there is a financial crisis. A crisis become a liquidity event if sellers cannot find buyers at a fair price or at extreme any price. If the security is more specialized or complex, it will be even harder for the seller to find buyers. There will have to be a greater price decline from fair value before a buyer is found … Read more Getting Ready for a Liquidity Event Through Using Index Futures
| |Here is a list that I’ve developed for Individual investors to know the answers to or ask before investing their risk capital with a Commodity Trading Advisor or Professional Money Manager. This checklist is ever evolving as new information comes to light or the dynamics change in the market place. Our hope in providing this list of questions is to assist new and even veteran investors to Managed futures a “system” or “methodology” that can provide them with crucial information, and steer them away from cardinal mistakes before placing their hard earned funds with a trading advisor. This is not our … Read more 12 Questions to Ask Before Selecting a Commodity Trading Advisor