Commodities Funds Update

MONEYLETTER Chief Economist Walter Frank made the following comments to Chuck Jaffe in a recent MarketWatch story on commodity investing. “The story is still, roughly, the same. You are buying commodities on the premise that global growth ultimately will show up in demand for commodities, meaning that you will do reasonably well in the long run. The people who do spectacularly well playing commodities, well, let’s just say that’s not the average guy buying a commodities mutual fund. So if you’ve got a commodities fund, you play the fundamentals and try to ignore the ups and downs, no matter how spectacular those moves can be sometimes.”