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In a message dated 2/6/00 10:11:39 AM Pacific Standard Time,
brente@xxxxxxxxxxxx writes:
<< I'm sure that there must be other commodity based funds out there
with all the thousands to chose from. >>
You would think so wouldn't you.....but the
fact is that there there aren't ANY mutual funds
which are indexed to the CRB,...or simply commodities.
Bear Stearns or a brokerage outfit had a fund coming that was
supposed to do this,..but it had an exhorbitant load (+4%) or
some nonsense,..and was full of fees. This was two years ago.
What came of the fund I have no idea. I recently looked for a commodity
based mutual fund and came up with nothing.
There are plenty of Natural Resource type funds,..which own
SHARES in companies that are commodity sensitive,..but
these stocks will suffer along with the market if equities take a dive.
Rydex has their Basic Materials fund,..again,...shares in companies that
are economically sensitive. (RYBIX) Notice how paper and forest,..etc and
other basic materials companies are doing poorly here,...likely a sign
that we are at the tail end of this economic expansion.
I ended up using the March CRB contract,...figuring one point equals $500,...
with the CRB around 210,..that gives you exposure to $105,000 in commodities
per contract. I found the CRB contract to be the best alternative
available.
Anyone know of other (mutual fund type) vehicles?
Jim
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