How to Time the Commodities Market

The article “How to Time the Commodities Market” examines historical data to determine if an investor could use predictive analysis to determine a commodities boom. The authors break down many methods in predictive analysis, and then quantitatively demonstrate how they each can be used to try and predict future commodities markets. The predictive analysis is then compared to a stock market index, in this case it was the S&P 500. The authors use this information to then back test results and come to a conclusion on their methods. The research question from the article is “Can quantitative analysis be used to determine a boom in the commodities market?”

The next section of the article that needs to be examined is the contribution. The contribution of the article is basically why is this important? The article “How to Time the Commodities Market” is important for many reasons. The first reason why the article is important is because it demonstrates methods that can help a long term investor time the commodities market. This could be a useful piece of information for companies and investors in the commodities market. It allows both parties to better understand the market and generate a profit. The next reason why the article is important is because it examines specific commodities that can influence market increases. This allows companies and investors to specifically pinpoint particular commodities and determine if their increase effect will also show an increase effect in the market. Furthermore, this article is important because it shows different methods that can be used in predictive analysis. The different methods allows investors to have different options for predictive analysis and be able to generate different answers. The final contribution of the article is that it can be used to predict potential rises of other financial markets. This allows investors to confidently invest in other financial markets besides commodities, and have confidence in the...