Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Support MFO
Donate through PayPal
what are your thoughts about commodities/agriculture going forward?
I think agriculture is absolutely something to look at and - personally - it's definitely one of my long-term themes. Personally, I think it's best played for many by a broad ETF. (MOO, PAGG) Be careful with the commodity futures ETFs, such as DBA (agriculture), as a number of them result in getting a K-1 tax form.
Any thoughts on PSPFX or PRAFX in this space? PSPFX seems to have a good mix of ag, oil, and some timber. PRAFX, which I am less enthused about, has a lot of mining stocks. BTW, is there a contango concern with DBC? I know some ETF's try to minimize it, I wonder if DBC is successful at handling this. Thanks.
I haven't seen any change in the fundamentals regarding peeps wanting to eat, crops needing water, global warming, scarce resources getting scarcer. Don't get all silly on the nat gas and shale boom. It's buying some time, but doesn't change the fact that we're simply figuring out a way to lick the bottom of the barrel for the last dregs. Ergo, nat resources/commodities should have a place in everyones portfolio.
The two basic ways of playing are with the stock of companies that are in the natural resource sector or buying the commodities themselves. There are funds and ETFs for both in so many variations it can make you a bit nuts. As Scott pointed out watch the tax implications of ETFs. Most mutual funds are better positioned for taxes. Or, you can put the commodity ETF in a tax deferred or exempt acct.
PSPFX, PRNEX, PCRIX. I've owned MOO and DBA for quite a while with the former being slightly green and the latter slightly red.
Reply to @scott: Hi Scott. I also like ag. So far have held onto Terra TNH (sold half when it hit 3X), and recently nibbled at Rentech RNF. Supposedly there is a great demand for nitrogen after a drought and RNF has the advantage of being located near those areas. Our Rogers Elements ag etn hasn't done so well but I'll hang onto it for now. FWIW, turbotax cut right through the k-1's for me; it is indeed a pain to input all the numbers but holding an MLP in a taxable account makes it worthwhile, IMHO. best, hawk
Reply to @hawkmountain: i had a very good run with JJA. no reportable income unless IRS rules something else which they haven't (just cap gains). i took a profit when it moved above $66 just because i don't believe in miracles. once it goes into low 50s, i'll do it again. funny, but many people on this board (and its predecessor) are very wary of etn's, but roll over to invest in countrywide and wamu subprime and alt-a mortgages (via pimco and doubleline) and clear channel and other junk bonds. talk about understanding credit risk.
Comments
http://www.benzinga.com/analyst-ratings/analyst-color/12/11/3127249/south-africa-etf-less-bad-than-gold-miners-fund
I haven't seen any change in the fundamentals regarding peeps wanting to eat, crops needing water, global warming, scarce resources getting scarcer. Don't get all silly on the nat gas and shale boom. It's buying some time, but doesn't change the fact that we're simply figuring out a way to lick the bottom of the barrel for the last dregs. Ergo, nat resources/commodities should have a place in everyones portfolio.
The two basic ways of playing are with the stock of companies that are in the natural resource sector or buying the commodities themselves. There are funds and ETFs for both in so many variations it can make you a bit nuts. As Scott pointed out watch the tax implications of ETFs. Most mutual funds are better positioned for taxes. Or, you can put the commodity ETF in a tax deferred or exempt acct.
PSPFX, PRNEX, PCRIX. I've owned MOO and DBA for quite a while with the former being slightly green and the latter slightly red.
just some thoughts,
peace,
rono
Hi Scott. I also like ag. So far have held onto Terra TNH (sold half when it hit 3X), and recently nibbled at Rentech RNF. Supposedly there is a great demand for nitrogen after a drought and RNF has the advantage of being located near those areas. Our Rogers Elements ag etn hasn't done so well but I'll hang onto it for now. FWIW, turbotax cut right through the k-1's for me; it is indeed a pain to input all the numbers but holding an MLP in a taxable account makes it worthwhile, IMHO.
best, hawk