Author Archives: Leola Ross

Commodities Myth #2: Contango = Losing Money

Let’s continue learning about commodities. This time we will learn about Contango and Backwardation. Backwardation – The Spot price is greater than the Futures price. Contango – The Futues prices is greater than the Spot price. Essentially, when the market … Continue reading

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Capitalizing on Closed-End Funds

Most everyone has heard about mutual funds, but their step-sibling, the closed-end fund (CEF), is less known. In the case of a mutual fund, the purveyor of that mutual fund will add or subtract shares as investors purchase or redeem. … Continue reading

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Commodities Myth #1: Negative Roll = Losing Money

In my last blog, we learned about spot and roll. Ever since these two concepts were defined, investors have been comparing roll return to spot return. In particular, if the return of spot copper is greater than the return of … Continue reading

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Commodities Jargon

In some ways commodities are similar to stocks and bonds – commodities are traded on exchanges and have indexes. In some ways commodities are different from stocks and bonds – to purchase commodities “exposure,” investors will often use futures rather … Continue reading

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