About food commodity funds, I put the following u
Post# of 63715
The nice thing about the finds and unleveraged ETN's. They pretty much follow the price of the underlying commodities. The article talks about "Carrying Costs". I checked out certain commodities like coffee and chocolate and compared them to a fund, JO and NIB. The commodity outperformed the fund by about 1.75% per year. But if you or I kept buying the individual commodities on the market, very expensive and a lot of trades. The funds can buy really cheap com pared to you and me.
Next, you buy into a stock fund, and they have carrying costs as well, but again, they buy much cheaper than you and I. So yes, I'd rather buy a stock fund, but I feel food, especially the grains are entering a mega trend. In the past, RJA almost doubled in 8 months. I feel this could be longer and higher this time. It won't be like buying penny stocks, but, you won't get wiped out over night because of a failed drug test, or such.
If the stock market falls, money is taken out of stocks and parking it in a new trend like beaten down food rising might give it a BIG boost.
Last, the Global Warming people would love food shortage stories, look for some exaggerated drought stories, etc from them, especially if food commodities do start to rise.
Remember, I am an expert in one area and only one, MY OPINION, lol, and too true.
Jim Rogers food unleverage food ETN>>>
http://stockcharts.com/h-sc/ui?s=RJA&p=D&...7561698432
RJA food mix is my US use, thus rice gets a small % compared to world use>>>
https://www.elementsetn.com/ElementsETNUI/RIC...e-ETN.aspx
Grains specific>>
http://stockcharts.com/h-sc/ui?s=JJG&p=D&...3656711724
Leverage food fund, fast rise, but faster fall. I checked it out a while back and RJA did slightly better than DBA over a 5 year period>>>
http://stockcharts.com/h-sc/ui?s=DBA&p=D&...6554179917