Commodities

[mathjak107]

Considering that general commodities funds such as PCRIX are down almost 25% over the last couple of months, I'm not sure I'd want to qualify commodities as a way to 'maintain a portfolios value'.

I might say that they're more appropriate as a highly volatile, high risk/reward, plausible tracker for unexpected inflation.

I'd also say that just owning the oil component probably nets you 90% of the benefit at about 25% of the risk.

i guess you can say the same for the indexes, emerging markets , and foreign funds. when its not that classes time it dosnt matter what it is.

 

[chinaco]

Study links oil prices to investor speculation - Yahoo! News

Ta da!

Whewww. Man I was afraid the stuff was in short supply.

Good to hear that is was nothing serious... just the affects of the consumer/investor/taxpayer being ripped off again.

We better hurry up and help everyone that was hurt by it. Consumers at the back of the line. Perpetrators to the front.

Surely the oil companies are expecting a govt bailout?

How about that poor hedge fund that scr3wed themself... Uca Sammy shouldn't forget them.

 

[cute fuzzy bunny]

i guess you can say the same for the indexes, emerging markets , and foreign funds. when its not that classes time it dosnt matter what it is.

If you actually read my post and what it replied to, you'd see that I didnt contest commodities as a potentially beneficial asset class, I contested its character as a 'value stabilizer' in a portfolio. I'm not even sure of their benefit as an inflation offset.

Given a sharp run up when inflation was tame and a sharp run down when inflation was high...I think it just struck out on both counts.

 

[mathjak107]

If you actually read my post and what it replied to, you'd see that I didnt contest commodities as a potentially beneficial asset class, I contested its character as a 'value stabilizer' in a portfolio. I'm not even sure of their benefit as an inflation offset.

Given a sharp run up when inflation was tame and a sharp run down when inflation was high...I think it just struck out on both counts.

Like everything in the markets things trade more on the perception of things off in the future than reality. all our biggest stock drops happened when things couldnt have looked better at that moment. all our biggest gains started when the word stock market made you vomit. with oill now dropping and the dollar headed up and things looking slower on the horizon the future prception seems to be lower inflation. and soooooo down we go..... just wait until the future looks better for a recovery, we will most likely take off again although it will probley happen before indicators point that way in reality yet...