Description:This download is a chapter from A Trader's First Book on Commodities: An Introduction to the World's Fastest Growing Market (ISBN: 0137015453) by Carley Garner. Available in print and digital formats. Read the following excerpt from the Introduction:
The Rise and Fall of
Commodities
It was nothing less than breathtaking to witness the grain complex shatter all-time high price records and continue to climb during the 2007/2008 rally. However, by late 2008 the party had ended. Many retail traders and fund managers watched in horror as the grains made their way relentlessly lower. The selling pressure and losses in the commodity markets was so profound that hedge fund managers experienced unprecedented numbers of redemption requests, which added fuel to the already raging fire. Ironically, the same asset class that investors swarmed to for “diversification” from stocks later played a role in the demise of equities. As investors pulled money from hedge funds, margin issues and client redemptions forced funds to liquidate positions in both commodity-related and noncommodity-related speculative bets. “There is no tool to change human nature…people are prone to recurring bouts of optimism and pessimism that manifest themselves from time to time in the buildup or cessation of speculative excesses.” Alan Greenspan
A Commodity Rally for the History Books
Several theories attempt to explain the now infamous commodity rally, including ethanol demand, long only hedge funds, ETFs, shear market exuberance in the absence of an attractive equity market, and sidelined cash looking for a home. One thing is certain…the euphoria caused the agricultural, energy, and metals markets to overshoot their equilibrium prices.
To continue reading, download this Introduction & Chapter 5. The full book is also available for sale in print and electronic formats.We have made it easy for you to find a PDF Ebooks without any digging. And by having access to our ebooks online or by storing it on your computer, you have convenient answers with A Trader's First Book on Commodities (Introduction & Chapter 5): Choosing a Brokerage Firm. To get started finding A Trader's First Book on Commodities (Introduction & Chapter 5): Choosing a Brokerage Firm, you are right to find our website which has a comprehensive collection of manuals listed. Our library is the biggest of these that have literally hundreds of thousands of different products represented.
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A Trader's First Book on Commodities (Introduction & Chapter 5): Choosing a Brokerage Firm
Description: This download is a chapter from A Trader's First Book on Commodities: An Introduction to the World's Fastest Growing Market (ISBN: 0137015453) by Carley Garner. Available in print and digital formats. Read the following excerpt from the Introduction:
The Rise and Fall of
Commodities
It was nothing less than breathtaking to witness the grain complex shatter all-time high price records and continue to climb during the 2007/2008 rally. However, by late 2008 the party had ended. Many retail traders and fund managers watched in horror as the grains made their way relentlessly lower. The selling pressure and losses in the commodity markets was so profound that hedge fund managers experienced unprecedented numbers of redemption requests, which added fuel to the already raging fire. Ironically, the same asset class that investors swarmed to for “diversification” from stocks later played a role in the demise of equities. As investors pulled money from hedge funds, margin issues and client redemptions forced funds to liquidate positions in both commodity-related and noncommodity-related speculative bets. “There is no tool to change human nature…people are prone to recurring bouts of optimism and pessimism that manifest themselves from time to time in the buildup or cessation of speculative excesses.” Alan Greenspan
A Commodity Rally for the History Books
Several theories attempt to explain the now infamous commodity rally, including ethanol demand, long only hedge funds, ETFs, shear market exuberance in the absence of an attractive equity market, and sidelined cash looking for a home. One thing is certain…the euphoria caused the agricultural, energy, and metals markets to overshoot their equilibrium prices.
To continue reading, download this Introduction & Chapter 5. The full book is also available for sale in print and electronic formats.We have made it easy for you to find a PDF Ebooks without any digging. And by having access to our ebooks online or by storing it on your computer, you have convenient answers with A Trader's First Book on Commodities (Introduction & Chapter 5): Choosing a Brokerage Firm. To get started finding A Trader's First Book on Commodities (Introduction & Chapter 5): Choosing a Brokerage Firm, you are right to find our website which has a comprehensive collection of manuals listed. Our library is the biggest of these that have literally hundreds of thousands of different products represented.