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Old 04-05-2007, 03:07 PM
Tupacia Tupacia is offline
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Join Date: Mar 2006
Location: Money Long Like Arms on Alonzo Mourning
Posts: 753
Default Re: trading/investing in commodities - why do/have people prefer equit

Two words: risk premia. I could throw a dart at a stock table and I'll outperform bonds and pretty much every other investment over the long haul. If I did the same with commodities I'd be a net loser because of transaction costs.
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