Wednesday, February 27, 2008

Sub Par Asset Class?

I cant believe what I am hearing. I just listened to some jack weed on CNBC call Commodities a "sub par asset class" Let me ask you a question America- If hard assets like wheat and soy beans are sub par, what is at or above par? US govt Bonds, New York City Municipal Bonds, US Dollars, Real estate... The list could go on for days. I am telling you right now, there may be volatility in futures, but actual holdings or basket ETFs on Commodities that are denominated in us dollars are among the few methods of hedging against super inflation. As I speak Uncle Ben is talking about cutting rates again. Rates get cut and the dollar gets weaker. Why is gold trading north of $940 and ounce? People are worried. Go do your own research, but If I have a choice between a 50 lbs sack of wheat and 50 bucks hidden in my closet. I will take the wheat.

1 comment:

1modelcitizen said...

The summary on this post ROCKS! $50 of USD vs. $50 of wheat? I'm right there with you. I'll trade ugly USD's for an asset that has REAL potential (like a bag of seeds) ANY DAY. Great post, and AMEN!