This paper produces some stylized facts about commodity futures and addresses some commonly raised questions: Can an investment in commodity futures earn a positive return when spot commodity prices are falling? How do spot and futures returns compare? What are the returns to investing in commodity futures, and how do...
Direct commodity investment has historically been a minor part of investors’ asset allocation. In recent years, however, investible commodity indices and commodity-linked assets have increased the number of available commodity-based products. In this article, the various theoretical arguments for the relative risk and return advantages of direct commodity investment are...
Daniel Gschwend submits: The last few weeks brought lots of losses in the commodity sector and probably caught most investors by surprise. There was even talk that the commodity bull market has finally found its end. Really? I don't think so. The only thing that has changed now is the...
Richard Shaw QVM Group submits: Commodity and energy funds of all sorts have proliferated in this recent commodity cycle. There are so many and they are so diverse, it is difficult to keep them all in mind. We put together this table of a variety of broad and...
Commodity storage-assets can be either physical storage-facilities, or contracts guaranteeing their use. Merchants employ them to support their commodity-trading activities in wholesale markets, which are characterized by notoriously volatile prices. Managing a storage asset requires determining an inventory-management policy, which, given a realization of the commodity price, consists of choosing...
BOSTON & NEW YORK -- Direxion Funds, a leading provider of leveraged index and alternative-class mutual fund products, has changed the investment objective of its commodity bull fund, and renamed it the Direxion Commodity Bull 2x Fund to reflect the increased leverage that it now offers.
Historically, commodity futures have had excess returns similar to those of equities. But what should we expect in the future? In addition, the evidence suggests that commodity futures are an inconsistent, if not tenuous, hedge against unexpected inflation. Further, the historically high average returns to a commodity futures portfolio are...
Public commodity pools have suffered by having to meet the demands of numerous regulators. The industry has sought reforms that would make commodity pools more viable, but now the NASD has limited what commodity pools can pay broker dealers. Will this be good for end-users or simply limit the number...
Two commodity indexes Commodity Research Bureau CRB and Goldman Sachs Commodity Index GSCI are in for a healthy competition at the stock exchanges. Although CRB did not cause any major sensation after it entered the New York Future Exchange in Jun 198Two commodity indexes Commodity Research Bureau CRB and Goldman...
NEW YORK & CHICAGO -- Deutsche Bank DB and PowerShares today announced plans to re-brand the DB Commodity Index Tracking Fund as the PowerShares DB Commodity Index Tracking Fund (symbol: DBC). This effort combines Deutsche Bank's leadership in global currency and commodity product structuring with the exchange-traded fund ETF product...
Public commodity pools have suffered by having to meet the demands of numerous regulators. The industry has sought reforms that would make commodity pools more viable, but now the NASD has limited what commodity pools can pay broker dealers. Will thi Public commodity pools have suffered...
NEW YORK -- On December 16, 2005, the Internal Revenue Service (the "IRS") issued a ruling that would limit the income derived from swaps on a commodity index ("commodity swaps") after June 30, 2006 to a maximum of 10% of the fund's gross income. The fund has not invested in...
NEW YORK -- On December 16, 2005, the Internal Revenue Service (the "IRS") issued a ruling that would limit the income derived from swaps on a commodity index ("commodity swaps") after June 30, 2006 to a maximum of 10% of the fund's gross income. The fund has not invested in...
We are making two changes in our model portfolios this week. First, we are going to take advantage of the recent sharp correction in commodity prices to add to all portfolios a 3% position in the iPath Dow Jones-AIG Commodity exchange-traded note DJP. After reaching a 52-week high of...
The U.S. Commodity Flow Surveys CFS provide a wealth of data on the movement of freight within the country, by mode of transportation, dollar value, annual tonnage, door-to-door shipment distance and shipment size. Yet gaps in CFS coverage and a lack of spatial and commodity detail limit the value of...
Sometimes the keys to successful time management have nothing to do with planners, schedules or organization technique. Instead, changes of viewpoint can make all the difference in the world. These epiphanies can transform one's outlook regarding time and how it is handled. One of the most important recognitions is understanding...
On August 8, 2003, the Commodity Futures Trading Commission CFTC adopted rule amendments Amendments under the Commodity Exchange Act, as amended CEA, that provide registration and other regulatory relief for certain investment funds and investment advisers that would otherwise be registered and/or regulated as Commodity Pool Operators CPOs and/or Commodity...
The emergence of hedge funds and investment banks as energy traders suggests that commodity trading is about to rebound. The current ratio between physical trading and commodity trading across all energy commodities when compared with other markets shows that there is considerable room for growth of energy commodity trading. This...
NEW YORK -- On December 16, 2005, the Internal Revenue Service (the "IRS") issued a ruling that would limit the income derived from swaps on a commodity index ("commodity swaps") after June 30, 2006 to a maximum of 10% of the fund's gross income. The IRS extended this deadline to...
NEW YORK -- Deutsche Bank announced today the upcoming launch of the DB Commodity Index Tracking Fund DBC which will list on the American Stock Exchange (AMEX: DBC). DBC is the first commodity-index-linked fund to be listed on a U.S. stock exchange and will offer investors transparency and access to...
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