Authorim 31 name is travis and lived a long hard life just like the most of you so i created this page to hopefully teach some of you a little something about investing and starting young if i knew then what i know now i would be a millionaire
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https://www.ft.com/content/9b5aa48a-5f9b-11e8-ad91-e01af256df68 A class of investors who have put tens of billions of dollars into commodities over the past few years does not care whether the prices of oil, wheat, cattle and the rest go up or down. Risk premia investing, a strategy borrowed from equities markets that weighs factors other than price, has caused a boom in trading volumes on exchanges and resuscitated revenue for banks bleary from a sluggish decade in their commodities divisions. Banks such as Bank of America Merrill Lynch, Citigroup and Macquarie are among those dealing derivatives linked to specialised risk premia benchmarks, executives say. Fund houses such as Pimco are also building their presence. Risk premia strategies have attracted about $20bn to commodities markets over the past two years, says a senior commodities executive at a Wall Street bank involved in the trade. By comparison, commodities hedge funds have received $13bn in net inflows since 2016, according to eVestment. A fund manager using the strategy estimates that assets in commodity risk premia have increased 15-30 per cent in the past year. “The majority of [investor] interest is in risk premia,” the commodities executive said. “The fees on simple vanilla index products have gone down to where it is uneconomic for banks to do the business.” He estimates that ultimately $60bn-$80bn would go into this strategy. Instead of trying to predict whether commodities prices will rise or fall, risk premia investors systematically place bets based on so-called factors such as momentum, volatility and the pattern of prices for future delivery. This stands in contrast to traditional commodities investing, which involves tracking an index such as the S&P GSCI or placing money with hedge fund managers claiming expert knowledge of the commodities they trade. Both standard index products and many commodities hedge funds disappointed investors. Indices were hammered by the recent raw materials price rout. For several reasons, not least high fees, the average hedge fund was lacklustre.
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