Tuesday, February 20, 2018

Read This Before You Bet The House on Commodities

March 31, 2010 by  
Filed under Inflation or Deflation

Ebullio Capital Management reported that its commodity fund was down 86.25% during the month of February. That’s not a typo. If you had invested the fund’s minimum requirement $100,000 on Feb. 1, 2010; by February 28, your account would be less than $14,000.

Lars Steffenson, the manager of the fund, claims that the funds investments in crude, wheat,gold and sugar were positive for the month, but they were “drowned out by the hugely negative impact made by copper nickel and tin.”

In an accompanying commentary, Steffenson gave a “hedged” prediction saying that

Either we are going to get hyperinflation and all tangible assets will explode 100 pct or more to the upside, gold will be at $5000/oz and paper money is history. Or we are getting Japan in the ‘90s with no chance of inflation because consumers will save, not spend no matter what the politicians do and all markets will be down 50/80 pct from here.

Be Sociable, Share!

Comments are closed.