Commodities basket

[Hugh G Recshun]

Quote from praetorian2:

Thanx,

I would have to ask my lawyers if that is possible, but I am intrigued. Too bad there is no holder or exchange traded fund I can purchase.

Can you redo the link. That did not work.

Harris:.

Another try: http://www.pimco.com/ps/bonds_prodserv_frms.asp?cont=/ps/bonds_prodserv_commodityreal.htm

If inflation or rising interest rates are a part of what you're trying to address then you may want to review the characteristics of senior floating rate closed-end funds such as EVF, NSL, PPR, TLI, VVR, EFL and PFL (new). Their most recent performance has been similar to junk bond funds but I guess that might change in a muddling economy with rising inflation.

 

[praetorian2]

Quote from Hugh G Recshun:



Another try: http://www.pimco.com/ps/bonds_prodserv_frms.asp?cont=/ps/bonds_prodserv_commodityreal.htm

If inflation or rising interest rates are a part of what you're trying to address then you may want to review the characteristics of senior floating rate closed-end funds such as EVF, NSL, PPR, TLI, VVR, EFL and PFL (new). Their most recent performance has been similar to junk bond funds but I guess that might change in a muddling economy with rising inflation.

Thankyou again. I really do not want something that is bond related. A bond will not go up like I expect come commodities like coffee and cotton to go up. CEF trades at a 10% premium but is exposure to gold and silver. I have a bit of that. It is a start, but I want exposure to more stuff. There must be another closed ended fund somewhere that has more.

 

[tmb]

Quote from Foz:

It's thin, but one idea is the Goldman Sachs Commodity Index future at the CME.

Or many managers buy their own basket of crude, gold, etc. futures.

Can anyone recommend a discount futures broker for trading the GSCI? Though the CME says the contract trades on Globex as well as the pit, Interactive Brokers doesn't seem to have it.

 

[tmb]

Quote from praetorian2:

Guys, thanx.

I am not allowed to buy futures. Is there any other way that you can think of?

I'm not sure if this would be any more permissible for you, but it starting trading in July and is a commodities futures index with many securities-type features: the ability to be held in securities accounts, pricing and margin more like a stock, and a distant contract expiration date of June 2006. The symbol I've seen for it is CTCM06:

http://www.cme.com/prd/overview_C32861.html

It was mentioned in another thread:

http://www.elitetrader.com/vb/showthread.php?s=&postid=312502&highlight=TRAKRs#post312502

 

[Turboman24]

Praetorian..........I have been grappling with this for some time. There is really not a good way to gain exposure to a basket of commodities besides the CRB futures contract. The next best thing is Pimco's fund....but I am afraid they will screw up the bond portfolio and diminish the returns from the Swaps........I wish they would just leave it alone and keep it an index fund....but I guess Pimco isn't in the business of indexing.

The Faber/Roger thesis makes a tremendous amount of sense to me - but the more I think about it the more I just want to own the metals. If their macro scenario plays out it will be fine just owning the metals - I know Rogers doesn't feel that way but Faber does. The Crude/Nat Gas exposure also scares me with any basket. The DJAIG is one third energy and GSCI is two thirds. That means that you must be able to envision considerably higher energy prices in the future to make money with a basket. Rogers (not to take anyting away from him) launched his fund (45% energy) when Crude was at 15 - hence most of his return. I simply do not know enough about Crude/Nat Gas to make this trade......and it is something you must consider. Rogers is always talking about Sugar and Coffee and yet they make up a very small percentage of his fund. I have been thinking about this a lot lately.......and I simply keep coming back to the metals.