The Ultimate Leverage Investment Thread

[CrushinFelt]

It may not be a bad idea to lump B & C together into some kind of broader index. If you don't see any good trades then there's really no reason to force yourself into two new positions. Maybe pick a sector or 2(pharm or tech or health care, whatever) and use that rather than individual stocks.

Also, with regard to your wheat bet, can I ask why May? It is the tail-end of a crop year so what exactly do you think will happen? Definitely don't take this as me saying not to go with May '08 wheat, I'm just wondering why you chose it.

The new crops are still very low priced (below $6.50 or 130.00 in your price terms I think). I doubt any farmer in all of Australia will be planting wheat next year because of how badly they all got clobbered (obv a little exaggeration). But then that might spur farmers everywhere else (Europe and USA) to plant a lot of wheat to take advantage of a shorter supply. That in turn may spark a shortage in soybeans or corn because not as many farmers will plant it next year compared to this year.

I think commodities are really interesting because it really is a game of supply/demand as well as the crazy variable of weather.

Perhaps Mr. Baseball can chime in here ;p