Оглавление
Amine Bouchentouf. Investing in Commodities For Dummies
Introduction
About This Book
Icons Used in This Book
Beyond the Book
Where to Go from Here
Part I. Just the Facts on Commodities
Chapter 1. Investors, Start Your Engines! An Overview of Commodities
Defining Commodities and Their Investment Characteristics
Going for a Spin: Choosing the Right Investment Vehicle
Checking Out What’s on the Menu
Chapter 2. The Pros and Cons of Commodities
Why the 21st Century Is the Century of Commodities
What Makes Commodities Unique
Commodities and the Business Cycle
The Pitfalls of Using Leverage
Understanding the Real Risks behind Commodities
Managing Risk
Part II. Making Money in Energy
Chapter 3. It’s a Crude, Crude World: Investing in Crude Oil
Seeing the Crude Realities
Going Up the Crude Chain
Making Big Bucks with Big Oil
Chapter 4. Welcome to Gas Vegas! Investing in Natural Gas
What’s the Use? Looking at Natural Gas Applications
Liquefied Natural Gas: Getting Liquid Without Getting Wet
Investing in Natural Gas
Chapter 5. Investing in Renewable and Alternative Energy
Getting to Know Renewable Energy
Digging Up Further Energy Sources
Chapter 6. Totally Energized: Investing in Energy Companies
Bull’s-Eye! Profiting from Oil Exploration and Production
Oh My, You’re So Refined! Investing in Refineries
Becoming an Oil Shipping Magnate
Part III. Metals and Agricultural Products
Chapter 7. Investing in the Precious: Gold, Silver, and Platinum
Going for the Gold
Investing in Silver
Bling Bling: Investing in Platinum
Chapter 8. All About that Base: Investing in Steel, Aluminum, Copper, and Other Metals
Building a Portfolio as Strong As Steel
Aluminum: Illuminating the Details
Bringing Copper into Your Metals Mix
Palladium: Metal for the New Millennium
Zinc and Grow Rich
You Won’t Get Nickel and Dimed by Investing in Nickel
Chapter 9. Unearthing the Potential: Investing in Mining Companies
Considering Diversified Mining Companies
Checking Out Specialized Mining Companies
Making Money during the Mining Merger Mania
Chapter 10. Trading Agricultural Products
Giving Your Portfolio a Buzz by Investing in Coffee
Warming Up to Cocoa
Investing in Sugar: Sweet Move!
Orange Juice: Refreshingly Good for Your Bottom Line
Field of Dreams: Investing in Corn
Welcome to the Bread Basket: Investing in Wheat
It’s Not Just Peanuts: Trading Soybeans
Holy Cow! Investing in Cattle
Lean and Mean: Checking Out Lean Hogs
You Want Bacon with That? Trading Frozen Pork Bellies
Part IV. Selecting an Investment Approach
Chapter 11. Welcoming Commodities into Your Portfolio
The Color of Money: Taking Control of Your Financial Life
Looking Ahead: Creating a Financial Road Map
Making Room in Your Portfolio for Commodities
Fully Exposed: The Top Ways to Get Exposure to Commodities
Chapter 12. Investing in ETFs and Commodities Indexes
Getting to Know ETFs
Accessing Commodity Markets through ETFs
Taking a Look at Leveraged ETFs
Checking Out Commodity Indexes
Uncovering the Anatomy of a Commodity Index
Cataloguing Five Major Indexes
Determining Which Index to Use
Chapter 13. Getting a Grip on Futures and Options
The Future Looks Bright: How to Trade Futures Contracts
For a Few Dollars Less: Trading Futures on Margin
Figuring Out Where the Futures Market Is Heading
Trading with Options
Chapter 14. Choosing a Manager or Broker and Trading Accounts
Mutually Beneficial: Investing in Commodity Mutual Funds
Mastering MLPs
Relying on a Commodity Trading Advisor
Jumping into a Commodity Pool
Ready, Set, Invest: Opening an Account and Placing Orders
Part V. The Part of Tens
Chapter 15. Ten Market Indicators You Should Monitor
Consumer Price Index
EIA Inventory Reports
Federal Funds Rate
Gross Domestic Product
London Gold Fix
Nonfarm Payrolls
Purchasing Managers Index
Reuters/Jefferies CRB Index
U.S. Dollar
WTI Crude Oil
Chapter 16. Ten Investment Vehicles for Commodities
Futures Commission Merchant
Commodity Trading Advisor
Commodity Pool Operator
Integrated Commodity Companies
Specialized Commodity Companies
Master Limited Partnerships
Exchange Traded Funds
Commodity Mutual Funds
Commodity Indexes
Emerging Market Funds
About the Author
Author’s Acknowledgments
Отрывок из книги
Why are commodities, long regarded as an inferior asset class, quickly moving to the investing mainstream? Good performance. Investors like to reward good performance, and commodities have performed well in recent years. In addition, investors can more easily access these markets: Plenty of new investment vehicles, from exchange-traded funds (ETFs) to master limited partnerships (MLPs), have been introduced to satisfy investor demand.
As commodities have been generating more interest, there’s a large demand for a product to help average investors get a grip on the market fundamentals. Commodities as an asset class have been plagued by a lot of misinformation, and it’s sometimes difficult to separate fact from fiction or outright fantasy. The aim of Investing in Commodities For Dummies is to help you figure out what commodities are all about and, more important, develop an intelligent investment strategy to profit in this market. Of course, as with every other asset class, commodities are subject to market swings and disruptions, which can be a source of risk but also an opportunity. As the 2008 Global Financial Crisis demonstrated, even the savviest investors with the latest up-to-date market information can struggle with unique investment events.
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A number of organizations regulate the futures markets, including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). These organizations monitor the markets to prevent market fraud and manipulation and to protect investors from such activity. Check out Chapter 13 for an in-depth analysis of the role these regulators play and how to use them to protect yourself from market fraud.
Although the futures markets offer the most direct investment gateway to the commodities markets, the equity markets also offer access to these raw materials. You can invest in companies that specialize in the production, transformation, and distribution of these natural resources. If you’re a stock investor familiar with the equity markets, this may be a good route for you to access the commodities markets. The only drawback of the equity markets is that you have to take into account external factors, such as management competence, tax situation, debt levels, and profit margins, which have nothing to do with the underlying commodity. That said, investing in companies that process commodities still allows you to profit from the commodities boom.
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