A prime example of why I don’t favour long-commodities in the portfolio: I don’t understand how/why they can fall, seemingly forever, on well-known economic themes.
Grains had it bad for most the year, but oil caught up. Here are 2 long-only ETF/ETNs showing the issue: USO follows the oil price, and CORN follows the corn price.
One characteristic that has been nice is sustained trends. That means medium-term momentum funds have made a killing on these products this year. A small pat on the back for inclusion of the managed futures mutual fund.
In other news, the equity markets seem to be rattled again – just a couple days after the JCB adding a ton of stimulus, and GPIF buying a new $180bn in equities. Maybe back to proper two-sided markets??