To #invest or not to invest (in #commodities) for #2012
After a year of instability in commodity prices, investors are understandably jittery about the future prospects for commodity investments. According to Financial Times, depending on whom you asked, commodities as an asset class will either suffer the most or benefit the greatest in 2012 with financial sentiment tending towards pessimism and physical traders being the opposite.
Such opposing opinions help explain current price movements and at the same time, play up the importance of low probability events with sizeable impact on prices such as a Eurozone default and a hard landing by China. To insure themselves against such tail risk, investors and traders are increasingly putting their money into commodities through the options markets. It looks like the trend for volatility in the commodity markets is likely to carry on into the new year.
Register now at Commodities Week Asia where speakers such as Frank Holmes, CEO and CIO of US Global Investors; Timothy Atwill, Director – Research and Strategy of Parametric Portfolio Associates; Terry Robacker, Managing Director of Tano Capital; Arno Pilz, Head of Metals Trading of Duet Commodities Fund; Brian Baker, CEO and Director of PIMCO Asia; and Christoph Eibl, CEO of Tiberius Asset Management will be sharing their views on how to profit from the current market volatility through the appropriate passive and active investment strategies.