Friday, August 8, 2008

On Commodities

From Donald Coxe, Global Portfolio strategist of BMO Financial Group:

This is not the end of the commodity bull market. Bear Stearns, F&F and other crises will one day seem trivial. The new global middle class that is repricing commodities never will.

I am behind the curve when it comes to investing in commodities. Right now, the only one that looks interesting to me is UNG. I did pick up very small amounts of GLD, GDX, and SLV today because I had no precious metals in my portfolio. ( I just thought of Gollum when I said "precious" metals--like I said, I'm really behind the curve.) Deep down, I think Swiss francs (FXF) represent a better hedge, and I own some FXF, but I see the merits of owning some Gollum, er, precious metals in an inflationary environment.

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