Economics, Econometrics and Finance
3 years ago

Speculators' ability to forecast prices impacts commodity futures market returns.

Palgrave Macmillan Books
Normal Backwardation, Forecasting, and the Returns to Commodity Futures Traders
Charles S. Rockwell

Paper Summary

Speculators in commodity futures markets can make money by either taking risks or accurately predicting prices. A study looked at data from 1947 to 1965 to see which explanation was more common.

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