# commodities correction, a valuable lesson



## joe sod (1 Apr 2008)

The recent action in commodities has been dramatic, the big rise since the start of the year and then the dramatic correction, it generated big interest and an awful lot of speculative money flowed in whether it be futures or delta index, alot of people are nursing losses, the one big danger with commodities is that alot can be bought with leveraged money, even though the bull market is far from over money has been lost, you want to be sure that whatever you put your money into that a major correction is not going to hit you, that you are invested in the best funds or stocks, futures and delta index are not for amateurs


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## ixus (1 Apr 2008)

I'd put the current "correction" as being down to hedge funds having to unwind positions due to margin calls. Nothing else. 

I'd agree with your sentiments on risk management, it's the most important aspect normally and even more so in the current market.


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