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The Big Picture at
Crown Futures
Five major paradigm shifts from paper assets (stocks) to tangible assets (commodities) have occured in the U.S. financial history. During each of these shifts, most investors in stocks have lost a tremendous amounts of wealth. Professionals have long had the resources to take advantage of the changing political, economic and environmental events that create global resource shifts. They move assets to the commodity markets when they perceive extraordinary opportunities or risk. For example, investors like Warren Buffet, who control large amounts of international capital, responded to the overvalued securities market of the 1990's by shifting equity into real assets. Buffet acquired one-fifth of the world's above ground silver supply in 1996 and 1997. Analysts for our sister company, IPAM, a stock brokerage, are continually warning investors that the double digit returns from stock portfolios of the last few years cannot be expected to continue and that other classes of investments should be considered. Commodity funds are one class very worthy of consideration.
More than #30 billion dollars have flowed into managed futures products - primarily funds - since 1990. These funds are widely held by institutional investors. However, with minimums in the millions, they are not accessible to the small investor. What do institutions and professional investors know know that the millions of households, who have billions of dollars invested in tradional securities portfolios, don't know?
Commodity prices have been declining since 1980, in many cases forming historic lows in price. Many analysts believe we are poised to move into a multi-year bull market in commodities in the new millennium. James Flanagan writes in his newsletter, Past Present Futures, "It was off of [the]...1939 low, that the hugh inflationary bull market of the 1940s was launched...After 19 years of lower prices, time has just about run out on this generational deflation. If that is true, the next generation of wealth builders will be those who shun the stock market and speculate on a secular advance in overall commodity prices..." Can you see how important it [is] to the financial health of an investor to make portfolio changes during these historic realignments?"
How can commodity futures become an acceptable investment vehicle for securities investors? The answer is professionally-managed futures products, and particularly the conservative products generated by Scale Trading.
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