
Recently, the editors of ETFR had the opportunity to talk with Peter Schiff, president & chief global strategist of Euro Pacific Capital, a brokerage firm specializing in foreign stocks. He has earned some well-deserved recognition for correctly predicting the current meltdown in the economy and in the capital markets. We spoke with Mr. Schiff about where currency investors should be placing their bets in the coming years.
Many investors buy commodities looking for protection from inflation. TIPS offer an alternative, or can be used in conjunction with
commodities to achieve a double 'real return.'
2008 was a rough year for commodity investors. Asset flows into commodities ETFs suggest that many new investors believed the commodity bull was here to stay. Unfortunately for those taking long positions, the first half of 2008 may have been a classic bubble that burst. The proof is in the chart: The S&P GSCI (which includes 24 commonly traded commodities) collapsed by 53% from its July 3 peak to its lows in December 2008.
The extreme volatility of the commodities markets these days can make it hard to see what's really happening. Neusner examines the big trends.