Email of the day 1
Comment of the Day

February 03 2011

Commentary by David Fuller

Email of the day 1

On the "morality" of investing in soaring food prices:
1) Your comments regarding taking initial positions in India were very educational and I would welcome more of those insights in the future.

2) Regarding the morality of investing in foods...I respectfully disagree with your position. I believe the Markets institutes it own morals...Shortages will be met with surpluses.. especially in foods. I am hoping the service will not become convulsed with trying to predetermine the Humanity of every investment. (I believe none of us can influence world outcomes.)

David Fuller's view Re 1): Thanks and it is Fullermoney policy to share our market thoughts and any insights regarding the wide range of asset classes which we cover as a Global Strategy Service.

Re 2): I am not against investing in foods, per se, as you know. I also have a degree of sympathy with your view on shortages, and I chuckled at your concern lest I become "convulsed with trying to predetermine the Humanity of every investment."

You are probably familiar with the adage: 'The cure for high prices is high prices.' Yes, but there can be painful consequences, to which I personally do not wish to contribute. You only know this about me because I provider subscribers with the details of every market trade and investment that I make, as each transaction occurs.

I have mentioned previously, and not just in the current market cycle, that I would buy commodity futures for foods when I felt that they were cheap and likely to appreciate, as I would with any other viable and promising market. However with foods I have also said that I would not retain these positions once food price inflation became an issue.

In saying this I am only speaking for myself and certainly not passing judgement on anyone else. It is a personal matter, just like any other investment choice and Fullermoney does not tell other people what to do. We will always comment on a wide range of markets, for information purposes, while believing that subscribers are more than capable of making up their own minds in terms of what is appropriate for them.

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