Category Archives: Commodities

How Badly is Gold Bleeding?

In light of much negative news about the bust in gold, I thought it might be interesting to share the impact the gold drop has had on dollar exposure in the two most widely used commodity indices, the S&P GSCI and DJ-UBS.  Below is a note we published today in a media bulletin: Good afternoon Read more […]

Good Calls and Bad Calls of Covered Calls

Generally investors use covered calls to earn extra income from investments they think might not have much upside potential.  For example, if a CEO has a very large stock holding in his or her company but doubts the stock price will increase (or decrease much), writing (selling) options on the stock to collect a premium Read more […]

Index Rehab: Is Backwardation Back In-Style?

My colleague, David Blitzer, is discussing index construction in his blog series “Inside the S&P 500”, and so far has reviewed selecting stocks and the float adjustment. While the index construction principles of transparency, liquidity, and systematic rules-based methodologies are widely similar between equities, commodities and other asset classes, there are details that distinguish the asset Read more […]

Paying Too Much at the Pump?!

Why are gas prices so high? I know I’m not alone as “a commodity lady” wondering this as I pull out my credit card to pay at the pump. (Which is not often since I ride my bicycle to work most days) Gasoline prices typically rise in the summer because more people travel to take Read more […]

That Was Easy

If every month were like July, equity investors would have an easy life.  The most striking thing about July’s U.S. equity market performance was how consistently good it turned out to be.  The S&P 500 was up +5.09%, with the Mid Cap 400 ahead of that pace (+6.20%) and the Small Cap 600 further ahead Read more […]

THE Golden Question?

What is your long term outlook for gold and where do you see prices moving in the months ahead? This is one of the questions I was recently asked in a Reuters CCTV2 interview.  While we are not in the business of forecasting, we are in the indexing business where we measure markets – and Read more […]

Where’s the beef?

While I was eating at a well-known restaurant chain, I saw this sign in the front window: So of course as a commodity lady my mind doesn’t think about choices like chicken or veggies, but I wonder what happened to the price of beef in the shortage and why is there a shortage?   The Read more […]

What’s in a Name

Picking the right ETF among the hundreds that are currently available is certainly a formidable task for many investors – one that has been made more difficult by iShares recent announcement that it is removing index names from a number of its ETFs. Why should this raise concerns for investors and for the financial industry Read more […]

Ready to Roll or Need to Weight?

In the past few years a number of indices have been launched with a goal of minimizing the impact of contango.  The first indices launched with this goal were the simple (1-5 month) forward indices and the relatively static S&P GSCI Enhanced. In the time period from Aug 2004-May 2011, mentioned in my prior post, these Read more […]

Keeping Up With Contango’s Twist

As mentioned in an article today in the Wall Street Journal, there may be a shift taking place in the commodities markets. In simple terms, there may be more predominant shortages of commodities. Generally as inventories are abundant, there are higher storage costs, which reduce returns from a condition called contango where the longer-dated contracts Read more […]