commodities and futures trading
Every time, when you go to the supermarket or shopping centre, you are surrounded by commodities, which are traded in all countries of the world. Sitting in your car, you are confronted with other commodities, which are traded not less actively. Without the commodities and futures trading that establish and regulate the prices of all that we need in order to survive, it would be too difficult or impossible to buy commodities because of the high cost.
Among these the most important commodities and futures trading - oil, gas, wheat and other cereals, cotton, soy beans, aluminum, copper, silver, gold, cattle, pork, sugar, coffee, cocoa, rice, wool, rubber, wood and even about eighty of the goods listed in the Bible of the trader - the Yearbook of CRB.
Commodities are so ubiquitous, that you will not be able to successfully invest in shares, bonds or currencies, not understanding anything in the market of futures contracts on commodities. You should be aware of the commodity futures, even if you invest only in stocks and bonds. Commodities included in any truly diversified portfolio.
Investing in commodities can be an insurance against downside, inflation, and even from the General downturn in the economy. Trade commodity futures consider risky business, but this is not so. In fact investments in commodities will be the most favourable from the opportunities this and future decades.
For most investors, commodities and futures trading is a mysterious the territory inhabited by the legendary dragons. Intelligent, well-informed people, who know by heart ratios P/E (price-earnings ratio) of the companies with big and small volumes of capitalization, study the balance sheets of banks and companies working in the sphere of high or biotechnologies, who proclaimed himself «sophisticated investors», followed the course of bonds with more passion than the score football matches and, perhaps, even for the rate of the dollar and the Euro, the yen and the Swiss franc, know nothing about futures on commodities.
And if they'd heard about them, then, most likely, this is the information from the second-or even third-hand, usually wrong. More often than not do without the history of «a person, who lost their shirts, investing in operations with soy beans». As Americans, which never go abroad out of fear that their offended or deceived, because they do not know the local language and customs, investors, øàðàõàþùèåñÿ from commodities, lose the great opportunity.
It is impossible to ignore the whole sector on the market, especially if you want to be considered «intelligent investor». The behavior of your friend, actively invested in the stock market, but did not even ïîäóìàâøåãî in the 1990s invest in the shares of high-tech companies, ïðîèãíîðèðîâàâøåãî successes of companies such as Microsoft, Cisco, Amazon, eBay, and even IBM, undoubtedly, will strike you odd. However, that is precisely what most investors are received in respect of commodities.
One of the reasons that the company and the stock market has flourished in the 1980s-1990s, consisted in the fact, that the market of commodities experienced the fall, due to the low prices for commodities companies whose business depends on natural resources, reduced costs and increased profitability. Investors, who have realized that the «bear» market of commodities at the end of the 1990s, has reached its limits, guessed, that is finished and the period of the «bull» market shares.
Permanent correspondents CNBC still rejoiced, and advising buy as many shares of .com, while the smart investors withdrew from the market and drew attention to the commodities. They know that the costs of businesses with shares will soon start to eat up the profits and stock price starts to fall behind her.
Trade commodity futures trading - this is not the second division, and the largest non-financial market on the planet. Annual production of only 35 of commodities, which are the most actively sold in new York, Chicago, Kansas city, London, Paris and Tokyo, reaches 2.2 trillion dollars. Volume of transactions (in USD) on commodity exchanges in several times exceeds the corresponding figures of all the stock exchanges of the USA. Transactions with commodities in even larger sums are taking place outside of the commodity exchanges. And where the market is there, and the opportunity to earn money
