Commodities exposesure

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daniel b 05-04-2008, 3:16 PM | Post #2514614 | 4 Replies

First to get my hand stamped at the door, I have a solo 401-K Roth with T Rowe and I own PRIPX. I'm looking to DCA into a 5% commodities position via a CCF fund like PRCIX or DBC (no fee's for the ETF). I've been waiting for a correction but I don't know if or when it might happen, hence the DCA. I'm also thinking about a 5% position in a broad based Natural Resourse fund like PRNEX or PNRZX. I'm debating whether I need both. Do you folks have dedicated NR funds or Commodities funds or do you let your fund managers deal with that. I'm 56 and have many of the same conservative funds as others around here ie OAKBX, SGIIX, MDISX, MACSX, amd FAIRX. This is mostly for diversification purposes.

Thanks for any responses, Dan

Related Topics commodities FAIRX Fund Managers OAKBX Roth

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Re: Commodities exposesure

coywesley 05-04-2008, 5:02 PM | Post #2514652

I was using Fidelity Select Natural Gas Fund, FSNGX, for Natural Resources exposure until about 2 years ago. I had to sell it when my employer moved our 401k to TRP. I never got around to replacing it with anything. Since then, all of the commodity sectors have had big run-ups. If I got back into any NR fund now, I would probably cause a 50% correction, and none of you would ever talk to me again:^( So, I guess all my active managers will have to do the leg work for now on, or until we get that 50% correction. But don't blame me:^)

Coy

Related Topics 401(k)managers natural resources sectors

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Re: Commodities exposesure

KCallie 05-04-2008, 5:24 PM | Post #2514657

daniel b:

I've been waiting for a correction but I don't know if or when it might happen, hence the DCA.

Wait a little longer. Like in 2009 when the interest rates start going up. Just sit tight for a bit, there are plenty of nicely priced financials to put your money in right now.

Related Topics financials interest rates

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Re: Commodities exposure

closer 05-04-2008, 6:20 PM | Post #2514676

While I think some commodities are in a long-term bull market, I'm not sure if I would be opening positions at this bubbly stage. I hold Pimco Commodity Real Return (PCRDX) in my 401(k); my daughter holds the etfs DJP and RJI in her IRAs. As for NR funds, I have held closed-end BGR almost since its inception. T. Rowe Price New Era (PRNEX) is a reliable choice. I would not allocate more than 5% in any portfolio to a commodity or NR fund. PCRDX can swing 2% to 3% in either direction in a single day.

Related Topics IRAs 401(k)bull market

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Re: Commodities exposure

randan 05-04-2008, 8:13 PM | Post #2514709

I would first run your existing portfolio thru the xray and find out what your current exposure to commodities is. I don't own a natural resources fund but am equal weight energy and about three percentage points overweight industrial materials as compared to the S&P. If oil were to drop precipitously were Coy to invest, I might add a NR fund such as PRNEX but then again I might not.

Note to Coy: Please invest in this sector as a marked decline in oil would definitely help by business's bottom line! Also throw some money in MOO as I am paying way to much for groceries as well. I am sure glad Bernanke has got this inflation thing under wraps (oy vey)!

Another Dan

Related Topics Funds natural resources X-Ray commodities industrial materials

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