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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (70463)	6/8/2022 8:21:47 PM
From: E_K_S	Read Replies (1) of 78921

Re: Commodity Run My largest and now best performer in this space is Vanguard Commodity Strategy Fund Admiral Shares (VCMDX) 37.46 +0.10 (+0.27%) (a new high) I started my position in this new fund about 18 month's ago. It requires a large minimum investment (for me a 4% portfolio position) and my 2nd largest position other than CVX. They pay out gains every year (around Dec) in a dividend (taxed as ordinary income) which was 25% last year. This year it continues to move higher as oil moves and other commodities like corn, soybeans and wheat. It is a managed fund so I let the experts do the day to day buying/selling. Typically they are heavy in oil futures but do buy grain future contracts. The fees are small so you do get the huge gains in this commodity run we have seen this year. ---------------------------------------------------------- Oil futures are at new highs and that may/could show much higher inflation as energy is a very large component in our economy. I do have long term Oil/NG holdings that I do not trade but at some point will need to book some gains if/when this run has peeked. CVX my No 1 portfolio holding. Also a NG/Oil play (the old Encana) is OVV. Still think this goes higher. Paul, this Oil move is one of the biggest gainers I have seen in a long time for any sector and I do not see it ending anytime soon. It is sad since US domestic supplies are abundant but no political will to promote more drilling. Also, there is limited refining capacity. Maybe another value play would be in new refinery capacity, perhaps in Mexico if US permits too difficult to obtain. Will need to do more research as this is an area I want more exposure. SRE was one stock that had exposure to NG pipeline into Mexico w/ LNG export facility. Seems like this could be a good growth area especially w/ the USMCA agreement. Any ideas from the board is appreciated.

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