Wednesday, March 05, 2008

Financial Times: UBS index to focus on food inflation

For those readers not quite ready to open a futures account, here's a good alternative option for you. UBS announced today that they are launching a new index that will focus on food inflation. Needless to say, this index would have produced very nice returns over the past 5 years - and I think the next 5 will bring more of the same.

The nice thing about this index is that it focuses on commodities that are not usually included in typical commodity indices. Most indices have traditionally been heavily weighted in the energy and metal sectors.

3 comments:

Anonymous said...

Hey sugarhigh, what makes you believe it will continue to generate those kinds of returns?

Anonymous said...

How is that different from investing in commodities? I guess food inflation will include energy and labour costs in the final product? I dunno, could be just another way to skin the same cat.

Good blog, lovin' your work!

SugarHigh said...

Exactly, just another way to do it. Appealing to the people who have a stock brokerage account only, and not a futures one.

Glad to hear it - thanks for reading!

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