The big problem, of course, is valuing the stuff and for now I think we’ll stick with mutual funds. SHAM’s exposure to alternatives has so far been limited to commodities – though this is through Investec Enhanced Natural Resources, which invests in equities.
Now run by George Cheveley and Tom Nelson, over three years the fund is down 14%, better than most of its peers given its ability to take short positions, but it has still lost money nonetheless. The question for investors in this area is should they sell or stick in hope of a rebound?
On the positive side, the dollar has weakened immediately after the first rate rise of the Fed’s last four hiking cycles.
If this were to happen again this time around after the Fed’s imminent rate rise, then that could be good for commodities that have suffered from the currency strength. Still, it seems a lot to ask in these days of rock-bottom oil prices.
Lest we forget there’s been a fair amount of crude oil used in the making of our plastics over the years, and despite accusations that she’s had some work done the remarkably youthful looking Barbie is undoubtedly looking good for her 55-plus years.
Gentlemen, the question is do you prefer bonds or blondes?
SHAM is the continuing adventures of a financial journalist and his meagre ISA. Follow at @SHAMinvestor
