A quick introduction for this week's Outside the Box. This is from my London Partner Niels Jensen, talking about the problems with long only commodity funds. This is something I discuss frequently but have not written about in some time. Quite simply, many of the commodity ETFs do not deliver what they promise and in fact many of the inverse funds can lose you money even when you make the right macro call.
Niels gives us a very good explanation of why this is so. So for those of you who have "diversified" into commodity ETFs (not actively managed funds!) or are thinking about it you might really want to read this.
Your running our the door for dinner in NYC analyst,
John Mauldin, Editor
Outside the Box
The Commodities Con
The Absolute Return Letter - May 2010
"There is a very easy way to return from a casino with a small fortune: go there with a large one."
I promise you – no mention of Greece in this month's letter. Over the past few months, I have been eating it, drinking it and sleeping it to the point where I need a break.
Instead I will…