Fund Administration

The commodities market are all set to take the center stage with government pumping stimulus packages across the globe it seems demand for it may rise because of the multiplier’s effect. This is an article about how commodities are going to perform and below mentioned are some views of the experts

Commodities from oil to copper are poised to climb as government spending worldwide spurs a recovery in demand and companies curtail investment in mines and rigs, said Deutsche Bank AG’s Simon Grenfell.

“We’re building up to have a really strong price move” over the next two years, Grenfell, head of Asian commodities for Germany’s biggest lender, said in an interview yesterday in Singapore. The risk of a “super-spike” has increased, he said, expressing his own opinion.

Commodities jumped 15 percent this year after slumping 36 percent in 2008, their biggest decline in half a century based on the Reuters/Jefferies CRB Index, because of the global recession. This year, gasoline and copper doubled on signs the worst is past for the economy and as China increased inventories of crude oil and industrial metals.

The world economy will grow 2.5 percent in 2010, more than the 1.9 percent forecast in April, after shrinking 1.4 percent this year, according to the International Monetary Fund. China expanded 7.9 percent in the second quarter, the first time growth had accelerated in more than two years.

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These are four common things that an individual may focus in order to be successful in the investment industry

·      Lack of a trading plan

One should have proper plan in place before stepping into the investment world. Analyze their risk and return profile before making a decision. Moreover, they should also have a clear idea of when they should enter into the markets and exit.

· T Too much leverage

Try to be risk averse and don’t invite yourself into trouble by taking huge leverage positions. It’s was because of extensive leverage LTCM failed to cover up its positions.

· F  Failure to control risk

Have a sound internal auditing and risk management team in place. Constantly focusing on the kind of exposure which a fund or their investment may be exposed too and try back you investments by investing in alternative investment avenues which would have low correlation with the traditional investments

· L  Lack of discipline

Abide and comply by the standards set. Try to focus on the fundamental aspects of the investment you make rather than making a decision based on the insider information ( noise trading).Understanding the know-hows of investments and trading according would eventually end up fruitful.