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There have been studies on the actual performance interaction of managed futures, stocks and bonds going back 20 years that answer these questions:
Reacting to the inflationary implications presented by huge budget deficits amassed here in the U.S. - in the next 10 years, the U.S. budget deficit is projected to rise more than in all the previous 233 years combined since the founding of America in 1776 - gold has climbed to record highs. Its ties (and inverse relationship) to the U.S. dollar has, historically, led advances in commodity prices. (We can print money, but we can’t print commodities!)
Perhaps one of the best ways to participate in the commodities markets is through professionally managed futures with professional money managers commonly called Commodity Trading Advisors (“CTAs”). Some experienced professional CTAs have been shown to achieve attractive returns. Please be advised that these returns are not guaranteed. CTAs are registered with the Commodity Futures Trading Commission and members of the National Futures Association. They are money managers who manage investors’ assets using investments in the commodities markets just as a stock mutual fund manager would invest his clients’ assets in a variety of different stocks. According to a CME Group study, Professional CTAs do experience a higher success rate than the individual amateur trader. The fact is there are numerous CTAs with attractive returns achieved through prudent money management! Be advised however, that there are also CTAs who have not experienced attractive returns and you are subject to the risk of loss no matter who is managing your money.
Investors should be aware that trading futures and options involves substantial risk of loss and is not suitable for all investors. There are no guarantees of profit no matter who is managing your money. Past performance is not necessarily indicative of future results.
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