Outside the Box

The Commodities Con

John Mauldin

May 18, 2010

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.

I have worked closely with Niels for years and have found him to be one of the more savvy observers of the markets I know. You can see more of his work at www.arpllp.com and contact them at .(JavaScript must be enabled to view this email address) if you want to follow up on their ideas.

Your running our the door for dinner in NYC analyst,

John Mauldin, Editor
Outside the Box

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The Commodities Con
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