Commodities: Anxiety and Performance
Oil, precious metals and farm products are causing anxiety for consumers at the gas station and the supermarket and we anticipate continued escalation in the gas and food prices. The unique market dynamics to this almost recession have created a situation in which commodity mutual funds may be your best hedge against rising gas and food prices.
According to Lipper, commodity mutual funds were up almost 20% for the second quarter and were up almost 30% for the year. It’s remarkable considering the fact that 70 of the 78 mutual fund groups followed by Lipper were down YTD through last week.
Here’s some funds that performed extremely well YTD and may continue to perform well through the end of the year.
Fund Return
Vanguard Precious Metals and Mining (VGPMX) 17.8
PowerShares DB Energy (DBE) 53.8
One mutual fund manager told Mining Stocks Blog, “Commodity mutual funds allow investors to invest in these real assets when these asset classes are rising. It’s a good way to hedge your life in a very scary time.”
