Periodic Table of Commodities, US Funds…

January 26, 2016 by Jim Colburn Leave a Comment

Here is a very cool chart from US Funds http://www.usfunds.com/media/files/pdfs/researchreports/2016/Periodic-Table-of-Commodities-2016.pdf :

After a return of -45.58% and -30.47% in 2014, 2015 is crude oil due to be up in 2016? This table, of course, is from the perspective of “long only” and the small print (click on the original link to see) suggests that it shows the “principle of mean reversion-the concept that returns eventually move back towards their mean or average”. Could someone please tell me what that long term mean or average is? For crude is it $100 or $18? And I assume implied volatility is mean reverting too? From a risk perspective, I find the concept that “the market can remain irrational longer than you can remain solvent”, attributed to Keynes, to be much more useful and practical… But I like the chart..

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