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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Knighty Tin who wrote (24929)3/4/2005 11:11:54 AM
From: Tommaso  Read Replies (1) | Respond to of 116555
 
>>>Commodity Futures outperform resource stocks by a factor of 3 to one and are safer than stock indices. <<<

"Outperform" goes for the downside as well as the upside, as I hardly need say. Also, if that is true, it can only be true for a diversified basket of commodities, a long period of time, and a great deal of capital to invest. I am inclined to believe the conventional wisdom that 95% of those who venture into commodity futures lose money and that many of those lose a great deal of their money, getting wiped out in the short term by the leverage.

However, I certainly do think that those PIMCO commodity funds are going to do a lot better than the stock markets over the next few years. If the stock markets ever do go into a bear market and make me a bunch of money on my bear positions, I can't think of a better place to put the money than PCRDX.