"We are commodities brokers, William. Now, what are commodities? Commodities are agricultural products. Like coffee that you had for breakfast. Wheat, which is used to make bread. Pork bellies, which is used to make bacon, which you might find in a bacon and lettuce and tomato sandwich."
--Randolph Duke (Trading Places)
Coupla things on the commodity front. Interesting article on potential for wheat supply shortages and the key drivers. About a week ago I initiated a position in the Powershares DB Ag fund (DBA) and info like this raises my conviction level (and buying behavior) a notch or two.
Here's perspective on the nutty price action in the natty gas ETFs. It's stuff like this that keeps me in manic depressive mode w.r.t. commodity investing. The fact is that most commodity investment vehicles are derivatives and are subject to tracking error (particularly single commodity funds) and/or counterparty risk. It tempts me to post my GAZ position for sale after a nice little 5% move.
positions in DBA, GAZ
Subscribe to:
Post Comments (Atom)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
No comments:
Post a Comment