Trader Vic on Commodities What's Unknown, Misunderstood, and Too Good to Be True

The key to making money in the investment world is to take advantage of significant price trends. Many investors limit themselves to a relatively small number of markets: for example stocks, bonds, and T-bills. In this important new book, Wall Street legend Victor Sperandeo advocates an approach which entails investing in both up trends and down trends in a variety of commodity, currency, and interest rate markets. Based on a tool he developed, called the Diversified Trend Indicator, Sperandeo's approach allows investors to generate superior returns (alpha) when commodity and currency markets are trending. The approach provides a natural hedge to the stock market and is particularly profitable during periods of rising inflation. In the 1980s commodity boom, for example, the approach generated a yearly compounded return of 22.5% versus an annual return of 8.44 0n the S&P 500 stock index. With commodities again surging, Sperandeo's approach offers a very attractive alternative to the stock market. The book provides a great deal of historical research and demonstrates conclusively that the methodology allows investors to benefit from commodity trends with relatively low risk.