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You’re right that we’re probably only at the beginning. However, commodity trading is a bad idea for most people because it has an “expected value” of zero (unl
by elil17 5y ago
You’re right that we’re probably only at the beginning. However, commodity trading is a bad idea for most people because it has an “expected value” of zero (unlike stocks and bonds, which have positive average returns). It’s very useful if you’re using it to hedge against increases in the price of commodity you consume.
- anonu 5y agoEV of 0? Are you assuming you're leveraged 50 to 1?
- throwaway_4ever 5y agoThey either mean commodities long term have 0% real returns, or that the “contango” of holding commodities as an asset means long term the asset's worth becomes 0 (high expense and 0% real return)
- 55555 5y agoThey mean zero sum or negative sum.