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You make some good points. Goldman Sachs has a sizable commodity and
futures business so they have no problem recommending them. The magazine I
referred to targets fee only financial planners who have the ability to
steer clients into managed futures funds as well as real estate ventures,
etc.
With all that said and the points you made, I still believe that we may see
a subtle move in the managed futures direction.
----- Original Message -----
From: <Jpilleafe@xxxxxxx>
To: <marlowec@xxxxxxx>; <realtraders@xxxxxxxxxxxxxxx>
Sent: Sunday, January 09, 2000 8:06 AM
Subject: Re: [RT] GEN: Shift to Futures?
> 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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