![]()
http://www.rogersrawmaterials.com/page1.html
http://www.ameinfo.com/61426.html
http://www.financialpost.com/story.html?id=328065
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/0...
We are in the early stages of a massive commodity bull market which has a long long way to go.Peak oil is here,agricultural production can't meet the needs of a increasingly affluent population in Asia and else where and China is driving the massive scramble for base metals.
How best to benefit from this trend?
Warren Buffett's lessons
rule 1:protect your capital
rule 2:dont forget the first rule
Applying these principles I am looking for an option focussed more on safety rather than returns.The emphasis in on more ,not that returns are not important.That is the reason why I am recommending this as the best investment available.One might get better returns on dedicated funds like USO(oil),GLD(gold),SLV(silver),DBB(agriculture),RJA(agriculture) but they require constant rebalancing as they fall in and out of favor.
from the website
The Rogers International Commodity Index ® (the “RICI”) 1 is a composite, U.S. dollar-based, total return index created by James Beeland Rogers, Jr. (“Rogers”) on July 31, 1998. The RICI ® was designed to meet the need for consistent investing in a broad based international vehicle; it represents the value of a basket of commodities consumed in the global economy, ranging from agricultural to energy to metal products. The value of this basket is tracked via futures contracts on 36 different exchange-traded physical commodities, quoted in four currencies, listed on eleven exchanges in five countries.
The index allows exposure to all the commodities tracked by the above ETF in one broad swoop and any downside in some commodities will be balanced by the others minimising risk.
Although there are many stocks in the portfolio their weightage is very low in percentage terms with respect to commodities.They are there for educational purposes only
current allocation
RJI 52.6 %
RJA 6.7%
DBB 3.4%
GLD 4.9%
SLV 6.0 %
USO 0.9 %
DBA 0.5%
75% pure commodities
$11.4 (02/10/08)
