PDBC
Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF
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Need Advice on ETF in Dividend Focused Portfolio (PDBC)
Why 15-25% price drops of commodities ETFs overnight?
Mentions
Take a few days or weeks off. It's OK. I'd get back in with some ETFs that don't go heavily into Tech, like FNDX or FNDB... they don't use market cap weighted indices. Get a generous slice of international... VXUS. High quality bonds. Cash. Gold. Commodities (PDBC). Relax.
PDBC, COM, GSG are all pretty flat for the last year?
Commodity ETFs like PDBC or FTGC give you exposure to real assets (energy, metals, ag) that usually rise when inflation or supply shocks hit. They’re just an easy way to hedge against falling dollar value or stock/bond weakness without picking individual commodities. Basically: small diversifier, inflation hedge, no futures trading required.
Easy enough just commodities ETFs — PDBC, FTGC, CERY
Mostly GLD, KMLM, XLE, PDBC, and VHT. But those are hedge positions. Outside of that my speculative cash is on KTOS, ENVX, and SPWR.
Been thinking about PDBC as a cheaper hedge than SLV.
Sitting in cash right now isn’t a terrible idea if you need the money over the short to medium term, except that high inflation is on the menu this year with a small chance of runaway inflation if the federal reserve is seen to lose its independence (eg by Jerome Powell being replaced with someone who immediately pushes for big interest rate cuts). You would be better off, IMO, diversifying some portion of that morning into other conservative value-generating assets (SCHD, VYM/VYMI, maybe an international bond or real estate fund) and also consider some smaller 2-5% allocations to alternative assets like gold or PDBC. This diversification, even if it’s done with small allocations, can meaningfully hedge against unlikely but dangerous scenarios like hyperinflation, stagflation, etc, while not worsening and possibly improving your returns in the base-case scenario
I like the concepts in the book Money Master the game: 7 simple steps to financial freedom. Here is the short of it and since you’re young it’s good to hear it early. Smart that you’re thinking on this early as well. Key Features: Balanced risk across inflationary, deflationary, and growth cycles. Low volatility: Backtested to lose less than 4% in worst historical years. Not heavily stock-dependent, which provides psychological stability. Tony Robbins’ “All Seasons” Portfolio Designed to weather any economic climate: U.S. Long-Term Bonds (20–25 yr) 40% U.S. Stocks (S&P 500) 30% Intermediate-Term Bonds (7–10 yr) 15% Gold 7.5% Commodities (broad basket) 7.5% Suggested ETFs (for implementation): • Stocks: VOO or SPY (S&P 500) • Long-Term Bonds: TLT • Intermediate Bonds: IEF • Gold: GLD or IAU • Commodities: DBC or PDBC
Thinking about going all in on PDBC calls expiring in October, is there any reason why the dollar would strengthen significantly between now and then?
PDBC calls @14 for September?
I have a decent amount in TAIL, PDBC and GLDM. Might be smart to sell on Monday and buy SPY dip 🤔
I get your concern. I've ended up with a mix of: bonds & fixed income (various, inc. global unhedged) short term treasuries (SGOV) growth equities (cybersecurity, battery tech, others) commodities (PDBC, DBA, IAU) currency exposure (FXY, FXF, FXA) divident & income stocks (SCHD, MO, others)
Split 30% /30% IWY/ONEY both etfs beat SPY and QQQ over 5 year annualized which for your time horizon is more important and also get exposure outside the US with VEU 5% Bonds have been terrible since Covid, and given all the deficit stuff won’t get better any time soon. Either purchase direct and hold duration or do only short term bills you can always move it later. Wait to interest rates are above 6% before getting exposed to long duration. 10% Allocate some to commodities as an inflation hedge PDBC maybe 5% as we’re about to start a new super cycle Invest in real assets to take advantage of the low prices and cash flow, UTF 5% And hedge against the dollar with Crypto BTC 2.5% and Gold 5% 7.5% cash Your diversification will hedge against downfalls especially in equities and good to counter inflation, high yields and other future trends. The last 15years equities have had QE as a tailwind with low inflation that has changed and we are entering a very different type of market environment. Base your decisions on future risks not past results.
There aren't any -- liquidity is either bad or terrible. Most don't even have options. If you can accept bad liquidity, I've traded shares of PDBC, which is a basket of commodities, but it only has quarterly options. The lack of K-1's was more important to me than options liquidity, since I was trading shares anyway. DBC is another basket fund, but has significantly less AUM than PDBC. If you want single commodity funds, GLD and SLV are tops for options liquidity. USO is an oil futures ETN, but it's gone through so many reverse splits I would avoid. Here's a list of all: https://etfdb.com/etfs/asset-class/commodity/
Teucrium offers agricultural commodity ETFs https://teucrium.com Sprott offers mineral commodity ETFs https://sprottetfs.com/setm-sprott-critical-materials-etf/ Commodities Are Falling. Here’s How to Buy The Dip https://www.barrons.com/articles/commodities-etfs-42f84f22 Tickers: PDBC FTGC BCI COMT BCD
Which commodities etf you recommend? I saw PDBC doesn't have a k1...
Should I hold UNG, BCI, PDBC? I've been holding for almost 2 years and I'm down quite some. Any speculation on recovery?
I just looked at the options chain for PDBC. Unfortunately it looks like liquidity would be an issue. The closest Exp. Date is 9/20, and I don’t see any bids for ATM calls. Selling CCs would be tough. And the IV is super low so if you were able to sell anything the return would be minimal. Are you specifically looking for a yield ETF?
Do you think PDBC would work with this model? I'm also looking for a low cost entry. I like what you're doing!
Hmm, imo for most diverse reach, you'd want exposure to different asset classes, so one ETF for stocks, bonds, and commodities, for the 4th, I was originally thinking cypto, but personally, I would be more interested in exposure to PE or HFs. So, personally, I would go something along the lines of VT (stock), BND (bonds), PDBC (commodities), PSP (PE) You'd want to dig in deeper to their holdings to minimize overlap/correlation, and/or sub in something different for VT if you want more tech exposure (QQQ maybe), and BND if you want more yield (HYG maybe).
$PDBC call up 10,000% brother what is happening.
Every time new information enters the market that has any connection whatsoever to CPI. For example, say that unseasonable severe weather is forecast for central states, like Kansas, Nebraska and Iowa, during critical planting windows for wheat and corn. That suggests less supply than had already been priced in for future demand, which will raise core food prices, which will have a knock-on effect on CPI, even if the next report is 3 weeks away and despite that fact that CPI is a trailing metric. You're right to worry about the connection between CPI timing and VIX. VIX is only loosely connected to CPI. CPI is more relevant to SPX, while VIX is SPX volatility. But there are more direct ways to play CPI. You can play commodities futures like oil, wheat and corn, or use options on baskets of commodities, like options on PDBC. So maybe you have the right idea, but the wrong trade strategy for that idea?
Hello, Cameco Sprott uranium trust Sprott uranium miners Sprott gold and silver trust Enbridge gas NFG TEI XMY PDBC Tiny amount in amd Nvidia dca not a believer. Canadian investor here what are the options for non residents to open brokerages or banks in South America Latin America Mexico or Asia? I want to be more diversified than nyse/tsx and USD/cad. Thank you
Probably a mix. Good ETF is $PDBC. It has a spikey dividend based on how the futures rollover.
Same here. Liquidated some PDBC holdings to nearly triple my position. Went from 7 shares @864 to 20 shares, with the 13 being bought at 791. Not quite the bottom, in hindsight... My investment is long term/buy and hold. I'll buy more if it dips below 700.
XAR PPA and commodities PDBC BCI and uranium URA URNM
I sold a couple of positions last year held in my Vanguard brokerage account (GSLC and PDBC). My cost basis on my 1099-b for both say "$0". The date acquired says "various" which is why I'm guessing it doesn't show a cost basis, but other stock I sold last year also says "various" and DOES have a basis. Anyone know why it'd show $0?
When we switched to robo, I asked for aggressive growth. The two ETFs with the high ratios were also in the red for the year. I think it is symbol PDBC.
I'm thinking this is going to lead to another inflation spike. Oil is up 4% today. Commodities up 1.6%. Thinking TIP, SLV, and PDBC might be a good plays for the next 1-2 years. Doing well on these moves, but a little pissed at myself because I was considering entering a SLV position yesterday while it was down, but went to do xmas shopping. When I returned it was already up 5%...
Art is one way (doesn’t have to be weird art). Precious metal coins/bars. Oil futures. There are also ETFS like PDBC if you want to go the easy route
PDBC holds commodity futures, which mark to market every day and can net together. Once a year (at least) if the net gains are positive, the whole thing will pay out as a dividend. So in 2021 for example, commodities mooned due to global inflation, so dividend was massive. In a situation where commodity prices were low, the futures could have a total loss for the year and there could be no dividend.
I was wondering why my shares of PDBC were up 1% today.
Commodities (PDBC +69.2%) and managed futures (DBMF +35.36%) did pretty well as expected.
Any thoughts on commodity ETFs? I'm looking into PDBC to diversify my portfolio.
yep it s too young. similar issue moving from DBC to PDBC
What happened to PDBC? 11% drop today. Did I miss something?
Noob question, if I buy PDBC now will I receive their annual dividend or have I missed that window?
The Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC), as the name implies, offers exposure to commodity futures without the tax hassle of a K-1, which some investors avoid.
Do you have a screener? You do you, but if I'm going to do a buy-write or "wheel" or whatever you want to call it that I'm holding a bag, it's got to be a bag that pays dividends. I target 10%, I've got some that are less. After that I'm looking for volume/liquidity of the underlying. I might use my ToS to pretend sell some calls against it see what the bid-ask is on the options and if there's enough interest that I'm going to get filled. It's probably a good idea to look at the IV patterns, see if you're gonna make money on the options, but for me I'm happy with dividends. I've made some decent change on PDBC and XLE this year, ZIM steamrolled me but I got my pennies, and I'll be getting the dividend too. TGT pays a tiny dividend and it's got significant volatility. You can do it.
How is that at all sustainable and why wouldn't everyone juts buy PDBC and do better than every other market?
I’ve been buying PDBC—40% dividend.
Roast my portfolio: Coca Cola, Intel, Costco, SPY, IHDG, LQDI, PDBC, ICLN
SPY VEA VIGI LQDI FBND PDBC… I’m scared of losing money
For those interested in this but via ETFs I use TILL and PDBC for exposure to agricultural futures.
Ultimately, you have to weigh the suggestions and historical returns to come to your own conclusion. That being said, this is a very unique situation to be in with inflation, the fed raising rates, and the world electrifying. My personal suggestion would be to dollar cost average (buy funds incrementally over time). A popular fund is VTI since it represents the entire stock market. It is also important in my view to have uncorrelated funds that will go up when other funds go down and vis versa. PDBC is an interesting fund to hedge inflation persisting. Most analysis believe that by reducing inflation by increasing bond yields, a recession would be the outcome and a the fed reserve would then reverse and decrease rates would benefit bond holders since bonds increase with decreasing yields. ​ In summary I would game theory out inflation, bond rates, stocks, and a possible recession to determine which funds to own and what weighting you should give those funds. I'm not an expert but I would dollar cost average into each of those over the next few months or so and continue to contribute on a biweekly basis. ​ Hope this helps.
I just discovered PDBC. Commodity fund with a 41% dividend! Wtaf?
What was in the green for you today? Mine were all carbon credits and commodities: GRN TILL KRBN PDBC and, no surprise: SQQQ
Pretty telling that 5 year breakeven rose today and tips moved up. I'm no expert, but it looks like the market is starting to price in higher inflation again. Thinking of going heavier into commodities and energy again. Lookin at XLE, URA, PDBC, SQM, MOS, and TAN
Note for OP: most of these have a K1, which is a whole separate tax headache. If you're not prepared to put extra work in come tax time, you'll want to check any futures based ETFs against this list: [https://finance.yahoo.com/news/etf-tax-tutorial-complete-list-130037114.html](https://finance.yahoo.com/news/etf-tax-tutorial-complete-list-130037114.html) There are some ETFs that don't make you deal with a K1. PDBC is one, but they are diversified in more than just food commodity futures.
Or you could do the boring but consistent way of going with - $VT = Total world equities - $BNDW = Total world fixed income - $PDBC = Commodities ETF
How old are you and what is your risk tolerance? As a 30 year old, If I was fortunate enough to make such gains, I'd recommend Dollar cost averaging into a portfolio of - 40% VOO = S&P500 ETF - 20% SCHD = High dividend US ETF - 10% PDBC = Broad Commodities Index/ETF - 10% BNDW = World Fixed income ETF - 20% Cash for emergency fund, other opportunities or several holidays.
In times like this, I too am re-balancing my portfolio which includes increasing my allocation in cash (since it is also a position) Worth adding some inflation or growth hedges for protection like commodity or energy funds - $PDBC / $XLE (oil) Good luck mate.
I'd do an even mix of BST, REMX, HTGC, PDO, SCHD, RVT, JEPI, and PDBC. Average dividend yield of 8+% with decent capital growth, good mix of monthly/quarterly/annual payouts, and most of those should do well in the current economic environment. I'd also reinvest as much of the dividend as possible.
Why just those commodities? Here are my data and my assumption, but don't take my words as advice. Make your own judgement. Anything can happen, I have used the All weather portfolio with adjustment to 50% Commodity and the rest 10% each, for these 5 months with monthly contributions at the 1st of the month. VTI has gone down by 12.6%, TLT 8.6%, GLD 4.7%, PDBC 3.36%, IEI 1.4%. These are are the equities available in the market, so basically everything is down. But I am still going to input 50% of monthly contribution to PDBC tomorrow, keeping the same portfolio to see if something move ahead of it. So far even savings with 1% is better than any of the equities and disregarding people saying 1% is still way below inflation, it is still a gain rather than a loss even it is unrealized. I have yet to see the market going one direction, the previous months PDBC/commodity still rules. By the look of it if VTI goes down another 13%, I would start shifting a bit more ratio to it than my 10% in it. Currently I contribute 50% to PDBC. It was once 9 to 10% up during these 5 months, with 5 to 7% up with the whole portfolio. but now down by 5% as a whole. Now feel what you feel can oil continue to go up, so commodity ve the winner in near term? I don't see anyway VTI can go up this or next year, can even be down more, and if the world is to be collapsed, GLD, gold is to counter such event. And after collapse and recover a little, bonds TLT or IEI kick in, and a little shift to them it is. That's how hedge is, and since we(x, I am) are second guessing, when everyone is down a lot, you down not so much. When everyone up so much, you not up that much, but with the right ratio, you can beat the market. So average result could be around 13% annually with adjustment, but that's a rough calculation for long term, not short term. These at least will keep you longer into the market than just 6 months or 1 year, because you are less prone to emotions from market drawdown nor mooning.
Anything can happen, I have used the All weather portfolio for these 5 months with monthly contributions at the 1st of the month. VTI has gone down by 12.6%, TLT 8.6%, GLD 4.7%, PDBC 3.36%, IEI 1.4%. These are are the equities available in the market, so basically everything is down. By the look of it if VTI goes down another 13%, I would start shifting a bit more ratio to it than my 10% in it. Currently I contribute 50% to PDBC. It was once 9 to 10% up during these 5 months, with 5 to 7% up with the whole portfolio. but now down by 5% as a whole. Now feel what you feel can oil continue to go up, so commodity ve the winner in near term? I don't see anyway VTI can go up this or next year, can even be down more, and if the world is to be collapsed, GLD, gold is to counter such event. And after collapse and recover a little, bonds TLT or IEI kick in, and a little shift to them it is. That's how hedge is, when everyone is down a lot, you down not so much. When everyone up so much, you not up that much, but with the right ratio, you can beat the market. So average result could be around 13% annually with adjustment, but that's a rough calculation for long term, not short term.
AMC was able to do what it did because we were in the final, euphoric stage of a decade long bull market. I strongly suggest you avoid it. I think a good way for you to diversify and take a higher risk/higher reward position is to invest in commodities. There are several popular ETFs you can do this with, like PDBC and BCI.
Personally I am holding PDBC (non k-1 commodity futures ETF), and KRBN (invests across carbon credit markets worldwide). Each is a small portion of my taxable portfolio (about 2% each).
Keep in mind that PDBC is *very* heavy on energy commodities. Its recent performance can mostly be attributed to the meteoric rise in oil and gas prices.
PDBC seems to be an effective inflation hedge. Last dividend yield was 38%.
VTI, PDBC, GLD, IEI, TLT in no particular order. I am still heavy weighted on PDBC for the last 5 months, 50%. I watch the trend of these equities and the effects of economic cycle and decide the weight of each every 1st of the month, or I expect for the whole year that some will be flat, and one or two will be top, so I bet and hedge on them, with money I can afford to lose without affecting my daily life/expenditures/emotions whatsoever. It is more fun than choosing individual stocks, because I know what is happening to the economy without reading people's life/suffering etc. That's just my opinion, not any suggestions.
Oil or commodity is like stock, invest monthly, not in lump sum if you do not have specific strategy. It is a hedge against overheated stock market. the stock market been overheating for the last 2 years and if recession is not coming in another 2 years, commodity probably fall another 10 to 15%. I am just second guessing, that's why I use All weather portfolio, with 50% PDBC, the portfolio is still down by 3.7% today. But compare to VTI's 12%, that's not much.
I have usually closed positions, parked the cash in something... like PDBC, Jo ect in shares. Then when I see a new put position close the commodities shares and enter a new put position.
Start by investing little by little like $1k to $2k a month. To be lazy, try lazy portfolio. There's one I have been trying these 4 months, but is based on a well known portfolio. Original All weather portfolio is: 30% VTI, 7.5% GSG, 7.5% GLD, 15% IEI, and 40% TLT My adjustment: 50% PDBC(substitute for GSG, since this one gets no K-1), 15% GLD, 15% VTI, 10% IEI, 10% TLT. Idea is to capture all kinds of assets in the whole world market (you can of course substitute VT for VTI, but I feel gold, bonds and commodity are pretty related to foreign investment)
Have you researched PDBC? Their expense ratio is about 0.6% which is higher than stock etfs but good for a commodity/futures ETF. I have a bunch of shares and i am up 22% since purchase.
Cash doesn't mean dollar bills hidden under your mattress. Any risk-free cash-like investment counts, like money market funds yielding 1.5%, bank 6 month CDs yielding 1.35%, 1 month T-bills yielding 1.13%, and all of those yields will go up when the expected 0.50% fed rate hike happens this week. True, inflation is 8.6% as of May, so you are still a net loser, but when your choices are a big loss, a bigger loss, and a ginormous loss, beggars can't be choosers. Personally, I bought shares of PDBC. Up almost 10% since I bought shares in March.
Energy, about 1/3 of total portfolio, using futures (2 lots of heating oil, 1 lot of gasoline, 2 lots of natural gas) Food/Grains 1/3, about 1/3 of total portfolio, using futures (5 lots of wheat, 3 lots of corn, 2 lots of soybean, 1 lot of rice, 1 lot of oats, 1 lot of butter) Three tactical calls together below, approximately the rest 1/3 Short Russian Ruble Short 1 lot of nasdaq futures Long 1 lot of copper Stocks - not a whole lot. Maybe about 10 percent of portfolios Some broad commodity etf, (GSP, GSG, PDBC, RJI, UCIB) Stuff just for fun, just tiny bit Short Bitcoin and Altcoins LAND etf (farmland) KRBN etf (carbon index)
VTI, PDBC, GLD, IEI, TLT, altogether, with more ratio on PDBC atm. The market is going sideway nowadays. Adjust to more GLD if market crash and depression happens, adjust to more IEI and TLT when market recovers, adjust to more VTI when market expands.
PDBC is designed for long term capital apprecaition
My play for today is take my profits on PDBC and BG or 10% or more and wait for them to drop again. Thank you WSB for getting those in front of me. Bought more CCJ today, thesis is long play Uranium, because even the huge China discovery won't go outside of China with all the Nukes they are building.
Commodities (GSG, PDBC) have been up these 4 months by 7%. I am not saying to all in on them now, but DCA with amount you can lose. I have been testing the All weather portfolio, with adjustment to 50% Commodity (GSG in IRA, and PDBC in Individual account), and 20% GLD, 10% VTI, 10% IEI, 10% TLT these 4 months. The normal All weather portfolio is 30% VTI, 7.5% GSG/PDBC, 7.5% GLD, 15% IEI, 40% TLT. Due to the current economic situation, I adjusted it. So far the hedge is yielding me 1.2% for these 4 months with about max 2.5% drawdown these 4 months. I am not worrying about such drawdown and even there's more I can offset the drawdown by my monthly DCA. Patience is the key.
YTD -4.5%, Moved to 55% cash in March. PDBC and BMY saving me.
When was HAL $5? HAL is not a company I watch closely but is a service company and they’re capacity constrained, I believe fully booked until at least next year. A less risky play but they would not directly benefit from higher oil or natgas prices like the upstream producers. Even the producers I agree I’m cautious on and more recently have been shifting to the underlying commodities: CL, NG, PDBC, GLNCY (last one is a mining company).
I found these interesting: "Over the 41-year period between 1962 and 2003 the cumulative performance of futures has exceeded the cumulative performance of “matching” equities. More interestingly, the correlation between the two investments has only been 0.40. By comparison, the correlation of the commodity company stocks with the S&P500 was 0.57. In other words, commodity company stocks behave more like other stocks than their counterparts in the commodity futures market. The conclusion of Figure 9 is that an investment in commodity company stocks has not been a close substitute for an investment in commodity futures." [https://www.nber.org/system/files/working\_papers/w10595/w10595.pdf](https://www.nber.org/system/files/working_papers/w10595/w10595.pdf) Also: "Stock prices are primarily determined by discounted expected cash flows stretching far into the future, which tend to smooth out short- to medium-term commodity price spikes—not least because, when commodity prices rise, producers are expected to increase supply, and vice versa. Many commodity producers either sell a portion of their production through long-term fixed price contracts or engage in programs designed to hedge some of their exposure to volatile price movements. This may limit the benefit from rising prices and, moreover, producers tend to hedge more when their revenues have been declining, which is precisely the time when the industry in general is likely to be cutting production to support a price rebound. During a demand shock, commodity producers may be in a position to respond with tactical leverage, temporarily stretching their production capacity to take advantage of rising prices. A supply shock, however, is by definition symptomatic of limited, compromised or insufficient production capacity—commodity prices will be rising, but producers will be unable to take advantage." [https://www.nb.com/en/global/insights/systematically-speaking-commodities-equities-or-futures](https://www.nb.com/en/global/insights/systematically-speaking-commodities-equities-or-futures) It seems as though, not without their own risks (ie credit risk) there are ETNs designed to limit contango risk and also don't issue K1s like traditional commodity future ETFs. On my current radar: RJN: Elements Rogers International Commodity Index-Energy Total Return ETN GSP: iPath S&P GSCI Total Return Index ETN GAZ: iPath Series B Bloomberg Natural Gas Subindex Total Return ETN PDBC: Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF Thoughts on any of these?
Commodity ETFs & ETNs are getting hit along with equities so I think it's a pretty good time to buy. I got some PDBC in my ROTH today. Also DBA calls for January.
$PDBC. I own it and it has been a great hedge to my large cap tech heavy portfolio This fund seeks to track a basket of the 14 most heavily traded physical commodity futures contracts. https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&ticker=
Well, a lot of the ETFs are made up of futures contracts, but anyways… DBC or PDBC is an option. PDBC does not have a K-1 for tax filing, DBC does.
PDBC. Commodities play. Headed higher
A core commodity fund/Etf - $PDBC or $GSG. I personally have hedged by tech heavy portfolio with a size-able allocation in $PDBC
$PDBC has printed money for me for the past 2 years
Been thinking about moves over the next 30 days. What do you guys think of puts on commodities like PDBC? If market really crashes, no sector including commodities will be safe. Like even gold goes down during market crashes. Commodities also tend to inverse stocks, so if we get a rally then they might also tank. Risk side- they have been bullish as fuck the last year with inflation and China lockdowns
I am currently having an adjusted All weather portfolio with more weight to GSG/PDBC, some GLD, less on VTI, IEI, and TLT, the dip just dropped my portfolio from up 1.5% to down 1.3%, which is about $35 to me. $35 is not much of a loss, so no panic at all. Mostly cash here, and will continue to DCA to such portfolio, and adjust it accordingly for different economic stages. Have little money in small caps as well. These are all fun to me and not creating any financial problem whenever the market dip or crash. There is no need to avoid corrections as the correction won't create a problem. That's the mentality of investment.
Just predict the next economic cycle or estimate what is the current cycle, and put money in different vehicles to get more gain. VTI for expansion, which currently is not, GSG/PDBC for overheating, which seems currently is, GLD/Cash for recession which likely to be next year or so, IEI & TLT for recovery. Have some of each, more on the current situation, more or less on upcoming situation. You can both time the market as well time in the market doing so.
Thoughts of PDBC or another commodity index As a buy and forget or long term hold?
Is commodities a buy and forget, like PDBC?
>Inflation is the worst it's been since WWII There are some stocks that made crazy gains during inflation periods. You just have to be judicious in finding the right ones. I have been riding Oil companies and PDBC. It's been nice. \*(Besides my -12% on my ETFs means I am not even close to even. but at least the Oils and PDBC have kept me afloat.)
Buy and hold Broad Index fund, for what you can afford to lose, whether it is time or money. Such investment should not be used for other purpose, other than for retirement. Some will suggest to invest 25% of your income to index fund, please consider that. Dollar Cost Average/contribute monthly. The fluctuations will likely not cause you any emotion, because every month's up or down is so little, and you will stay investing for the span of your working life/till financial independence without relying on job. VTI is such fund. If for safer method, 30% VTI, 7.5% GSG(if in IRA)/PDBC(if in taxable account), 7.5% GLD, 15% IEI, 40% TLT. If want to leverage, make adjustments according to economic stages, expansion-more VTI, overheating-more GSG/PDBC (like right now), recession/depression-more GLD+Cash, recovery-more IEI, TLT.
Weird, just now got the notification of your reply. Thanks for the response. I had PDBC and PSLV on my watch list, been waiting for a better price to get in but I should've just jumped in a couple of months ago.
PDBC is a decent general commodity etf; I’ve made a bit swinging it over the last few months and the daily charts look good on it (I’ve been out, but after looking at it I will go back into it tomorrow). WEAT, PAAS, PSLV, GLD, UUUU, DNN. Those are some I hold. Mostly in the gold- silver - uranium sectors. Commodities have been going into a super-cycle for a while now. Charts look good for almost all those. (Not advice, just paper trade with Crayons, I’m a dumb monkey and you shouldn’t listen to anything I peck out on my keyboard)😬