Ep. 364: Simplicity Trumps Complexity with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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The Benefits of Long Term Investments in Commodities
Commodities are better suited for trading than investing because they go through boom and bust cycles. These can help in a highly inflationary environment such as the 1970s, but investors will be disappointed most of the time. There are so many more speculators in commodity markets now that any risk premium earned in past decades has probably been compressed. If you think about it, a long term bet on commodities is a bet against technology innovation.
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