Posted on 08/03/08
Commodity futures can spice up your holdings
One of the most effective ways to play the seemingly inexorable rise in commodity prices is also one of the scariest-sounding to the uninitiated.Futures contracts present a higher level of complexity than stocks and funds, not to mention the risk of ruinous losses. But they also offer several advantages over traditional investments in energy, gold, metals and agricultural products. If you invest directly in a commodity producer, you're assuming the risk that the firm's management will make decisions that negatively affect returns. And unlike futures contracts, the performance of resource stocks and funds are influenced by the general mood on the stock markets.
The full text of this article has 1366 words.
To continue reading this article, you will need to purchase this article.
Already have a member account? Login now
Pay-Per-View Offers To read the complete article, select one of the following options
Purchasing from globeandmail.com is quick and secure.
