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Re: [RT] Leverage Capital in Soybeans



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I have no idea where you're coming from.  I just gave you an example 
for the bonds.  Put $100,000 in the money market, buy one bond 
contract.  Or buy $100,000 worth of long term treasuries.  What's the 
difference?  The answer is you can be more nimble owning bond futures.

As for having to become a farmer in lieu of investing in soybeans is 
akin to becoming a computer consultant instead of buying tech stocks? 
What kind of statement is that?

If one's view of the world were that we are beginning a long lasting 
p/e contraction, the dollar was going to decline in value and capital 
flows would favor commodities, what in the world is wrong with buying 
soybean futures, hedging your dollar exposure with currency futures, 
or even selling some index futures every now and then?  Just because 
stocks have offered superior returns over the past 20 years, is 
hardly any reason to believe they will continue to do so.  Just ask a 
Japanese investor.

I always thought the futures market was developed to allow everyone 
to hedge their exposure and minimize their risk.  I'd much rather own 
a few soybean futures in my portfolio than some tech stock.  As Norm 
said,  there will always be soybeans tomorrow.  You just never know 
about those tech stocks.




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