Trading Commodities and Currencies in a Portfolio
BUS 445 – Portfolio Management
Scott A. Blumer
Waynesburg University
Abstract
This paper explores several published articles that report on results from trading commodities and currencies as it relates to portfolio management. A few of the articles that I researched gave me a more general idea of how to invest in commodities and currencies. Some of the articles vary in that each of them has a different opinion on portfolio theory. For example, in their article, Jensen, Johnson, and Mercer claim that commodity futures are equal to equity returns over time and that they offer significant diversification benefits to an investment portfolio. In
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The four categories are energy, metals, livestock and meat, and agricultural (Agarwal). The commodity market can allow investors to earn returns based off the price volatility of different commodities in the global market. Obviously, in today’s market, online trading makes it a bit simpler for individual investors and investment firms to trade commodities. However, investing in commodities often comes with higher risk than equity but can be just as fulfilling if done properly (Agarwal). Commodity trades are vastly leveraged trades, meaning that the margin requirement for trading is pretty low in comparison to total holding, which increases the gains and losses an investor can earn (Agarwal). The three main ways an investor can invest in commodities are through stocks, mutual funds, and commodity futures. Investing in a commodity-based stock like a sugar company is one way. This is a traditional investment approach that will allow for secondary contact to commodities. A point to make apparent is that there is no correlation amongst commodity prices and commodity stock price fluctuation (Conover). A stock’s operation can be dependent upon overall market sentiments (Conover). Lastly, investing in commodity-based stocks can be simpler for minor investors instead of openly investing in the commodity market. Another way you can invest in commodities are through mutual funds. In this case, an investor can invest in a commodity-based mutual fund like one that
Have you ever been to an event where all people pay attention to is their phones instead of the event? No matter what is going on around us, we can’t put down our phones. We are obsessed with them. Extreme obsession, or addiction in other words, can lead to inhuman actions. Some people are so addicted to video games that they starve themselves. They deprive themselves of a basic human necessity. This is like Chillingworth who can’t seem to let go of Dimmesdale’s sins with Hester. He is so obsessed that his addiction results in him performing inhumane actions, and these actions lead to him becoming an inhuman being, such as the Black Man. Hester’s scarlet letter causes others to act inhuman towards her, but Chillingworth's scarlet letter of
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Understanding the fact, that falling commodity prices and rising dollar cannot last indefinitely, and maybe even bottomed out for now, I see a lot of perspectives within these markets in one year period. Moreover, a lot of forecasters expect inflation to move toward two percent goal during this year, which will result in substantial rise in commodity prices. Although, it is a controversial issue according to the FED projections for the current and the next year, which have been lowered from previous numbers (Table#1).
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Mining; Sierra Leone is rich in natural resources available to be mined. By increasing investment in and receiving international support for this industry, Sierra Leon can
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The extracted data used includes monthly returns from January 1972 to July 2011. The assets are selected so that the portfolio contains the largest, most liquid, and most tradable assets. The choice of such a variety of assets across several markets was used in order to generate a large cross sectional dispersion in average return. It helped to reveal new factor exposure and define a general framework of the correlated value and momentum effects in various asset classes.
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As a freshman at OFHS, I walked in willing to make changes to my schedule to succeed, even if this means cutting down on my free-time. Currently, I only participate in one school activity, which is marching band. I am considering joining chess club and track, which I did at the middle school. Currently, there are no activities that aren’t school-run that I participate in. During my free-time, I enjoy playing games on my laptop and XBox. I also enjoy going outside and playing with my neighbors. As a student, I knew that I needed to improve towards the end of last year. I found myself struggling with quizzes and tests about books that we read as a class. This year, I hope to read books more thoroughly so I can perform better on any questions we get about what we are reading. I also hope to improve my proofreading skills, as I had trouble with that last year. I also want to be more creative with my writing, especially projects and journals that do not have directions about what exactly to write. Currently, one of my biggest enemies is public speaking. I hope to reduce this fear and to ask questions when I need to. I will also try to not stumble while reading out-loud. When taking a test or quiz about a book that we are reading as a class, it is always helpful to have a study guide so I know what I need to know for the quiz. I feel that this year, I will be able to improve on my habits.
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The main roles of social workers is to work with vulnerable people and their families to offer support during difficult times, with the goal of improving their lives and keeping them safe from further harm. To do this they create a professional relationship with people and offer them guidance and advice, at times using their professional judgement and ensuring it is acted on in making tough decisions which the clients may not favour at the time. All social workers in the UK are recognised by their registered qualifications with the Health and Care Professions Council, many holding certificates showing their competency and training within the field. Other qualifications social workers hold include nursing,
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