Wanted: The Next Big Idea in Commodities

The Financial Times reports that in a year when coffee has gone up and nickel has plummeted, active indices are the investment.

The market news is quoted as saying,

But now money is flowing into “active” commodity indices, bankers say. Early iterations of the theme use algorithms – based on anything from market momentum to inventory levels – to shift allocations between different commodities. More recently, banks have shifted their sales push to new indices that base their allocations on fundamental views of the market.

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