Hi Everyone,

Have any of you invested in commodities just to get burned? In the past, I never invested into commodities or currencies, because it was for my taste too difficult or too costly. Now there are many ETF’s out there that do just that.

These ETF’s are available in both long or short, i.e. that the commodity will go up or down respectively, and you can be a part of it with just a small investment. I think these are also a great diversification of the portfolio.

I have been watching the oil price over the past months a little closer than previously, and I came across an ETF which investment objective is to benefit from a lowering oil price. It obviously has performed quite badly over the past 12 months, on the other hand, if you think oil has peaked for now, this could be nice short term investment. This ETF also has options that have some volume, not a lot, but enough for comfort. The symbol is DUG. I am in no ways recommending buying this, but I think it could be a nice contrarion play if you are into something like that.

With all the talk about $150 oil and so on and lower oil prices not even a topic, we possibly have reached a peak for now. Gold peaked a little while ago, and the dollar has turned some over the past few week. So we all shall see.

Feel free to write me or comment.

Cheers,

Patrick