Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Compound Your Way To Wealth With Commodity Tradin

Commodities / Commodities Trading Nov 09, 2009 - 05:41 AM GMT

By: Andrew_Abraham

Commodities

I have had countless conversations with investors and even institutional investors that do not believe that commodity trading and trend following can compound ones money to wealth. Besides the fact that only trend following and commodity trading are the most liquid, the most transparent and most highly regulated industries the common belief commodity trading is risky. Well the truth is, everything is risky. Even staying in cash these days is risky.


Risk must is managed and addressed. The point of this point is show there are commodity trading advisors that have been around for decades that have compounded their way to wealth not just for themselves…but for their investors. The reality is so many investors might have invested with some of these commodity trading advisors but at the slightest draw down they ran for the exits. Successful investing with trend following commodity trading advisors requires a long horizon, patience and discipline to stick with the commodity trading advisor during the darkest draw downs ( there will be plenty…no one promised you this would be easy). Look at some of these commodity trading advisors.

Abraham Trading Company Since 1988 Annual ROR: 20.88%

Aspect Diversified Program Since 1998 Annualized Return 10.09%

Beach Horizon LLP This return since 2005 Annual ROR: 19.44%

Campbell & Co Since 1986 Global Diversified Large Portfolio Annualized Return 9.25%

Chesapeake Since 1998 Annualized Return 11.73%

Clarke Capital Management Since 1995 Annual ROR: 14.23% ( depending on which program)

Di Tomasso Group’s Equilibrium Program Since 2002 Annualized Return 43.09%

Drury Diversified Trend Following Program Annualized Return 15.46%

Eckhardt Global Financial Program Annualized Std. Deviation 12.64% since 1980s

I can go on and on… Simply compare these numbers to the Stock Indices. The majority of trend followers had greater returns than simply stock market investing…and most of all…less draw downs….On several instances the stock markets have fallen close to 50%. Who wants to go through this painful experience?… There are no guarantees with trend following as well… The greatest draw downs are always ahead of you.

More so the above mentioned commodity trading advisors are shown just as an example. I am not endorsing them or suggesting you invest with any of them. You need to do your due diligence. I have invested with some of them however.

When I discuss compounding your way to wealth, I do this every day. I invest with other commodity trading advisors to smooth out our trading. There are no magic managers nor magic systems. My goal is to grind out returns over many years and make myself available for trends when they are present. This is the way to think if you truly want to succeed long term.

Andrew Abraham
www.myinvestorsplace.com

Andrew Abraham has been in the financial arena since 1990. He is a commodity trading ddvisor and co manager of a Commodity Pool. Since 1993 Andrew has been a proponent of quantitative mechanical trading programs. Andrew's major concern is not only total return on investment but rather the amount of risk that one would have to tolerate in order to achieve returns He focuses on developing quant models that encompass strict risk adherence and correlation. He has been a speaker at conferences as well as an author of numerous articles. Andrew has spent years researching ideas that have the potential to outperform indices as well as maintain fewer draw downs.

Visit Angus Jackson Partners (http://www.angusjacksonpartners.com) Contact: A.Abraham@AngusJackson.com (mailto:A.Abraham@AngusJackson.com)

© 2009 Copyright Andrew Abraham - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in