Derivatives Shoot the Moon

One Comment

1. The graph on page 25 kind of jumps out at me. While all the prices on the left appear to be rising at similar rates, the energy and agriculture derivatives activity on the right far exceed the activity for base and precious metals.

   I’ve always equated derivatives with leverage. The more leverage in a market, the more pressure and volatility on prices. Everyone I know is complaining about food and gas prices. People who live in developing countries are up in arms about food and gas prices.

   Derivatives are evil. I haven’t the knowledge to explain it, but it looks intentional.

Comments are closed.