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Ask your self why Wall Street is in business and
you get the answer to your question...(what is the
likelihood of a shift toward managed futures?).
Wall Street is in the business of selling stocks and
bonds....pushing inventory,....and doing whatever it
takes to generate commisions. Commodities,.. as
an asset class are very unlikely to ever be part of
Wall Street's business.
Consider,...1. Few brokers or financial planners are
licensed to trade or even able to get quotes on commodities
....for instance,...no commodity quotes are available through
Charles Schwab,... 2. There is only one mutual fund indexed
to the CRB index (a brokerage house loaded type product),...
and 3. The CRB Index futures are Soooo thinly traded,...for
FEB CRB contract average volume is 16-20 contracts. Etc.
Ask any broker or financial planner how to gain exposure to
commodities as an asset class,...and you will likely be greeted
by a blank stare. This is not their world. It is alien to everything
they stand for ....the mantra.... "buy and hold stocks as the
asset class for long term capital appreciation" is all they have been
trained for.
It's great that Abbey Cohen can give commodities a 3% wieghting
in their "model" portfolio asset allocation....and I too found it
interesting that she stated this......but what I found moreso
interesting was that Louis Rukeyser did not ask her how the average
individual's or institution's portfolio could get such exposure to
commodities. Clearly not desirable from Wall Street's perspective.
What a joke.
Jim Pilliod jpilleafe@xxxxxxx
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