Archive for the ‘Hedging’ Category


Futures Markets Provide Opportunities Uncorrelated to Traditional Investments

The great recession began in the Fall of 2007 and some would argue that we have not yet begun a recovery.  At that time, the S&P 500 peaked with a high close just under 1550.  Over the next 18 months or so, it declined to a low under 700, or a drop of over 50%. [...]

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New Commodity Bull Market?

In recent weeks it has become apparent that markets are itching to move again.  Stock markets have been in rally mode since November, and Treasury prices have declined steadily.  Currencies are also on the move, as the Yen has embarked on a historical down move.  Now, it appears that the U.S. Dollar is about ready [...]

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Futures Trading, Hedging and Speculation

As mentioned in our previous article, the futures markets were essentially created to allow businessmen and farmers to limit their price risk.  In other words, these traders are able to hedge their price risk in the cash markets by trading in the futures markets. Hedging can occur in two ways.  The first type of hedge [...]

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