Commodity Futures for Investors

Take the bull by the horns.

Much has been written in recent years about the on-going bull market in commodities. Many have attributed the sharp rise in commodity prices to the increasing demand for resources from emerging markets including developing nations in Asia and South America.

How do you play the bull market in commodities?

If you are like most investors, you gain exposure to the commodity complex by buying common share ownership in the companies that produce commodities. More likely than not, you have been disappointed recently with your level of returns.

As recent academic research conducted by economic scholars at the University of Wharton and Yale University suggests, buying the commodities themselves simply outperform the companies that produce the commodities over the long run – with considerably less volatility.  The study also shows that the discrepancy in performance between commodity futures and common share ownership actually widens during the early recession phase of the economic cycle.

Isn’t it time that you reconsider your investment strategy when it comes to commodities?

Whether you are looking to trade commodity futures on a daily basis, or want to hold commodities for your portfolio for the long-term, the Burak Hannon Brojde Group can create custom-tailored commodity solutions that meet your specific needs and risk tolerance.