Wednesday, June 10, 2009

God, Guns, Gold and Glencore

Historically there have been three core values that Americans fall back on: God, guns and gold. When the going got tough they went to church, hoarded gold and holed up at home with a Remington rifle or two. To this mix we can now add Glencore. Glencore and Credit Suisse have just announced an index that will be based on Glencore's traders' views of the markets they trade. The Glencore Active Index Strategy will track 20 major commodities based on votes from Glencore's traders.
Glencore, the Swiss-based now-orphaned offspring of tax-dodger Marc Rich, is one of the largest traders and suppliers of commodities in the world. It has its fingers in pies from metals to oil to agricultural products. Its traders are highly regarded as being the best of the best. So if they don't know what the markets are doing, no one does. I'm not saying they always get it right - they had a few hairy moments during the credit crisis when all of their long position prices went in the toilet - but for the most part.... I intend to invest in this index.

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