Commodities Strategy: Grains and Gains

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Alternative Asset Management Alternative Assessment Commodities Strategy: Grains and Gains Overview: Commodities futures act as a way to speculate on the value of a commodity before it is brought into market. Reacting heavily with global macro events, commodities can be volatile and can result in great gains as well as great losses. Pricing of each commodity is directly related with supply and demand. Commodities also offer the opportunity to buy a good without having intrinsic value attached. With a stock there is an added value from brand name or the name of the producer as Karl Marx says, “"From the taste of wheat it is not possible to tell who produced it, a Russian serf, a French peasant or an English capitalist." (Marx). The commodities market features items ranging from Precious Metals to Agriculture as well Commodity Basket ETFs. One can diversify by investing in Gold, Silver, Soybeans, Cattle, Hogs, Crude Oil, and so on. Global Market Overview: Major Economic Factors 1. Russia 2. Slowing Emerging Markets Russia- Starting in late February after the Ukrainian Revolution, Russia’s president Vladimir Putin has occupied the farthest eastern part of the Ukraine, Crimea. Since then he has argued that Crimea should be occupied to protect Russian citizens. Now, Crimea has succeeded and is now a state of Russia. Russia is currently in a build up of soldiers and weapons near the border. As Russia does not look like it will budge or withdraw its troops
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