Profitable momentum strategies in commodity futures markets outperform traditional assets.
The article explores how to make money by predicting price trends in commodity markets. It shows that following the crowd and buying what's popular doesn't work, but buying contracts that are expected to rise and selling those expected to fall can be profitable. By using these momentum strategies, investors can make an average return of 9.38% per year. These strategies involve buying contracts that are cheaper now but expected to rise in price, and selling contracts that are more expensive now but expected to fall. These commodity-based strategies don't move in sync with traditional investments, making them a good addition to a diversified portfolio.