Posted by fishbait on 26th of Jun 2011 at 02:18 pm
In 2 words, they suck. If they are held very long you will
lose time value . Also they may be invested wrongly by the
managers of the fund. DXO is a good example of how things can go
wrong. In 2009 it had to be shut down because it did not gain value
when oil rebounded. For the short term a commodity may work
but remember the contract time value loss. Long term only works for
indices for ETF's.
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oil & gas ETF
Natural Gas
Posted by fishbait on 26th of Jun 2011 at 02:18 pm
In 2 words, they suck. If they are held very long you will lose time value . Also they may be invested wrongly by the managers of the fund. DXO is a good example of how things can go wrong. In 2009 it had to be shut down because it did not gain value when oil rebounded. For the short term a commodity may work but remember the contract time value loss. Long term only works for indices for ETF's.