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In 1983, two great commodity traders and friends were having an argument. One was of the opinion that great traders are made. The other said,” No, they are made.” Both had a bet. They placed an ad in the famous Wall Street Journal, The New York Times and the Barrons for novices to apply for apprenticeship as commodity futures traders. Lo ahd behold many hundreds applied. Only 13 novices who had never traded anything before were selected and taught by these two great men how to trade commodities. Thus the great Turtle Trading Experiment in the history of trading was born. These novices were called as Turtle Traders by the two great traders. Ultimately almost all succeeded and became millionaires themselves. Learning commodity trading is not difficulty. This is the best time to do it. Commodity markets have entered a historical bull market that will continue for many decades in first half of the 21st century.

Commodities like gold, silver,oil, copper,uranium, wheat, cotton and other are experiencing an all time high historical prices. Gold prices recently breached the unheard of historical barrier of $1200 per troy ounce. Gold prices have retraced somewhat, but the market is poised for another rally in gold prices in the next few months. Other commodities are also experiencing a all time high demand. Crude oil is expected to reach close to $200 per barrel in the next few years with the global economy finally out of recession. What we are watching is a secular bull market in the commodities. This secular bull market may continue for many decades in 21st century. That is why it is being said that 21st century belongs to commodity trading. The fundamentals behind this secular bull market are strong. Continue reading ‘Commodity Markets in a Boom For Many Decades in 21st Century’ »

Whenever Wall Street comes up with a new product it behooves Main Street to be skeptical about the hype. In this article we are going to look under the hood of the latest product to get the UK financial services market in a tizz: the multi-asset fund. Whilst there is nothing new in having a balanced fund of bonds and equities, there are more and more funds being launched that offer access to a broader range of asset classes, including: private equity, commodities, bonds, equities property, and hedge funds. What is also new about these products is the low cost structures that they are being offered in.

Low cost structures have become a reality as the result of consumer demand. After years of being hammered by large fees these have finally come under the microscope as fund values have plummeted. It seems a bit rich to pay someone 3% per annum to manage the dramatic decline of your assets. The advent of Exchange Traded Funds and Exchange Traded Notes are the other driver behind multi-asset funds. Now fund managers can use these listed tools to access a broad range of asset classes. Indeed the Gold ETF is though to have boosted the price in gold as it was formerly quite tricky to invest in without purchasing the physical product. Continue reading ‘Multi Asset Funds – Are They Any Good?’ »