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Gold/Mining/Energy : Big Dog's Boom Boom Room
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To: Bearcatbob who wrote (91318)9/30/2007 4:08:36 PM
From: carranza2  Read Replies (1) of 206131
 
commodity eliminates the political risk of the stock.

Depends on the commodity.

If you think of crude and gold as commodities [I certainly do], then the political risk is huge. Not so as a general proposition with ag commodities, though agricultural subsidies such as exist in sugar, should be a thing of the past.

If you buy crude contracts the way Don does, the risk is in my estimation enormous because the risks are political, e.g., the recent Canadian blindside and the excess profits tax of the 70s, and are leveraged. A possibly toxic combo, which is why the reward is so spectacular.

You can always eliminate political risk by being Hillary Clinton, whose commodities wizardry is legend. vbg.
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