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Commodities anyone?
Old 05-28-2007, 08:28 PM   #1
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Commodities anyone?

Aside from an occasional topic on oil, nobody has really mentioned diversified commodity investments much lately - PRCIX, etc. Do you still maintain a position or did you cut ties? Kind of curious to know.
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Old 05-28-2007, 08:38 PM   #2
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Metals are trading up today on foreign markets. I purchased a SEAsia ETF with a mining company on it's short list.

Remember Brewer and others talking about bulk shipping and the huge demand. Much of this is raw material, commodity, transportation.

So.. in a nutshell, there are a couple ways to play this.
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Old 05-28-2007, 08:46 PM   #3
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Quote:
Originally Posted by wildcat View Post
Aside from an occasional topic on oil, nobody has really mentioned diversified commodity investments much lately - PRCIX, etc. Do you still maintain a position or did you cut ties? Kind of curious to know.
Just oil and oil service for me right now mainly through Fido select funds and a couple of wild a$$ gambles----ABP & ENG.
How about water as a commodity. My water resource ETF is finally coming to life albeit only slightly---PHO.
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Old 05-28-2007, 08:56 PM   #4
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Confucius didn't say (but should have): "Man who wager donkey often lose his ass." Take that as capsule advice on what'll happen to you if you try the commodity game. But heck, give it a shot, after all, you're better than most people right? ("Cognitive bias.")
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Old 05-28-2007, 09:10 PM   #5
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Uhhhhh ok. Actually, altough it can be debated (research backed), small investments in PCRIX can be/have been good diversifiers to an equity portfolio and are viable investment options. Thanks for the tip though
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Old 05-28-2007, 09:11 PM   #6
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This is one of those areas that I suspect might have been a beneficial anti correlation tool and unexpected inflation offset before there were 947 ETF's and funds and a brazillion dollars worth of junior investors money involved...i'm not sure what the heck it is now, other than an expensive little rocket ship for gamblers and people who obviously know much more than I do...
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Old 05-28-2007, 09:14 PM   #7
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I suspect some short-term wash out but we could see a reversion to historical results eventually. I wouldn't count it out just yet.
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Old 05-28-2007, 09:53 PM   #8
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I'm still holding on tight to DJP. I rode it up from 46, so I'll have to wait until it is under at least 30 before I sell. (If all goes as my usual)
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Old 05-28-2007, 09:55 PM   #9
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I am still keeping PRCIX in my tax-deferred account -- only 2% of my portfolio.
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Old 05-28-2007, 10:47 PM   #10
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I think I have too much exposure to commodities:

corn/ethanol/ag via POT
uranium via CCO.TO
oil&gas via XIU.to

and a few small positions in other things. Being Canadian, our total market indexes are heavily weighted toward commodities. Am I going to change? Not yet.
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Old 05-28-2007, 11:23 PM   #11
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I think I have too much exposure to commodities:

corn/ethanol/ag via POT
uranium via CCO.TO
oil&gas via XIU.to

and a few small positions in other things. Being Canadian, our total market indexes are heavily weighted toward commodities. Am I going to change? Not yet.
What was your total portfolio growth rate for 2006?
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Old 05-29-2007, 12:44 AM   #12
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I have 5% of the protfolio in PCRIX and DBC combined. I have been waiting for the commodidties to go down to see who would hold on.

-h
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Old 05-29-2007, 03:41 AM   #13
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i keep 5% in gsg or dbc..... ill dabble in uso and gld at times also
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Old 05-29-2007, 07:02 AM   #14
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I still think PCRIX and DJP are valuable tools in a diversified portfolio. Even if returns are more modest than they have been historically, the inflation protection is worth having.
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Old 05-29-2007, 07:28 AM   #15
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I have a small amount of PCRIX and a fair amount of TIPS in my port, and therefore, wonder if I should switch to a different commodities related investment since PCRIX utilizes TIPS as well. Is DJP the best and most diversified commodity alternative?
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Old 05-29-2007, 07:30 AM   #16
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DJP is better in taxable accounts. Other than that, it is very close to PCRIX. The main difference is that PCRIX uses TIPS as collateral and DJP uses t-bills.
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Old 05-29-2007, 07:49 AM   #17
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Hi Brewer, My stuff is all in non-taxable accounts. Do you know the pro/cons of DBC vs DJP vs PCRIX? I am thinking of dumping my PCRIX and switching to one of the others since PCRIX uses TIPS as collateral and I already have a large TIPS allocation in my port. I also have PRNEX, PCL, and BGEIX in my "commodities related" allocation.

Thx,

DFW
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Old 05-29-2007, 08:37 AM   #18
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I still hold PCRIX. No plans to sell it.
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Old 05-29-2007, 09:28 AM   #19
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Quote:
Originally Posted by DFW_M5 View Post
Hi Brewer, My stuff is all in non-taxable accounts. Do you know the pro/cons of DBC vs DJP vs PCRIX? I am thinking of dumping my PCRIX and switching to one of the others since PCRIX uses TIPS as collateral and I already have a large TIPS allocation in my port. I also have PRNEX, PCL, and BGEIX in my "commodities related" allocation.

Thx,

DFW
DBC is messy on taxes just like PCRIX. In a taxable account, DJP reigns supreme, assuming you are comfy with the credit exposure to Barclay's (Aa2 rated, IIRC).
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Old 05-29-2007, 09:50 AM   #20
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I use managed futures, which are basically a basket of commodities. My eyes were opened by the Yale Foundation.

However, I have NO MORE than 5% of my client's portfolios in them, and for most it's around 3%.........
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