Futures and commodities speculators can take advantage of highly leveraged exposures in both financial and non-financial markets such as energies, grains, meats, and metals. That means they can buy futures contracts by depositing just a small percentage of the overall contract price. Their overall goal is to try and maximize profit from changes in the price of the futures contract.
Hedgers, those who hold a specific commodity (asset) or have a specific exposure (such as energy cost), often take a position opposite of the cash market to help reduce risks which is key to a solid strategy.
Investing in Futures and Commodities
Futures and commodities investments offer investors with more complex investing needs, to potentially profit from both the upward and downward movement of commodity and financial markets.
Because the futures and commodities markets can be highly unpredictable — often swinging dramatically — futures and commodities investments are not suitable for all investors.
Before investing, consider your:
- Financial experience
- Financial resources
- Investment goals
- Risk tolerance.
Association Financial Services does invest in some commodity ETFs, mainly physical shares of gold as an additional allocation and diversification strategy. However, if you’re an investor where futures and commodities align more with your investment goals and risk tolerance, we can recommend another Investment Adviser who can help you invest in this highly specialized niche.
Association Financial, LLC, and Association Financial Services, LLC, can provide you with a wide range of advisory services (whether fixed or variable investments), including:
- Annuity selection (fixed or fixed-indexed)
- Assistance in deciding when to buy and sell your investments
- Review of insurance and investment portfolios, as well as transferring assets or qualified plan rollovers
- Individual bond, commodity, equities (stocks), ESG stocks, Exchange Traded Product (ETP), investment trust, and REIT selection
- Strategic asset allocation strategies including re-balancing
- Attorney and CPA services
- and much more.
Contact us here for more information.
Investing in securities involves risk of loss that clients should be prepared to bear.