Saturday, May 16, 2009

Commodity trend funds need end to market volatility

sterday, 04:39 am
by Barani Krishnan (Reuters)

A steady economic rebound that sparks a big rally in commodities and stocks, or a deeper recession that pushes prices further down, is what trend-following commodity hedge funds need to reprise last year's heady run. Skip related content

These funds thrived through most of 2008, buying oil, metals, grains and equities as they rose and selling them as they plunged. They have not done well lately due to volatility in markets they trade in, including currencies and bonds.

But the so-called Commodity Trading Advisors, or CTAs, could have big gains again this year if global economic recovery strengthens and financial and raw materials markets start surging again.

more in:
http://uk.news.yahoo.com/22/20090515/tbs-us-commodities-trends-analysis-9c49c44.html