Don’t look now, but commodities continue to lead the asset class scoreboard in 2018, as rising crude prices and a bounce in the US Dollar Index lead the charge. This comes as Goldman Sachs is announcing to investors there’s no reason to fear commodities anymore as rising interest rates could make the rally in commodities prices last.
The remainder of 2018 is shaping up to be a bountiful scenario for commodity investments and commodity trading advisors. A bounce in the U.S. dollar means the value of all the commodities increase, as those markets are based in dollars. A good number of commodity markets are now in backwardation, which could allow investors to take advantage of a positive roll yield by simply being long a market. Rising interest rates are good for Managed Futures programs as it allows the ability to go short bond prices (rates up) and the ability to earn a higher interest rate “on the side,” so to speak, via investments in T-Bills, bonds, and other notes with their excess cash (read how that works here).
The month-end numbers for the rest of the asset classes were mum, with no asset class making or losing 1% in April. Despite numerous 1% daily moves and one day with a 2% move in the S&P 500, the moves virtually canceled each other out to finish up 52 basis points in April.
Source: All ETF performance data from Morningstar.com
Sources: Managed Futures = SocGen CTA Index, Cash = 13 week T-Bill rate,
Bonds = Vanguard Total Bond Market ETF (BND),
Hedge Funds= IQ Hedge Multi-Strategy (QAI)
Commodities = iShares GSCI ETF (GSG);
Real Estate = iShares DJ Real Estate ETF (IYR);
World Stocks = iShares MSCI ACWI ex US Index Fund ETF (ACWX);
US Stocks = SPDR S&P 500 ETF (SPY)
The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.
Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.
Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.
Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.
Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.
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