it's been trading sideways for over 3 months, meanwhile they charge 0.85% in fees. I'm begining to wonder if this thing is dog crap instead of meaningful investment.
You are mislead when you read about shortages of food suplies. Shortages and surpluses are all related to world growth. What the USA, Obama, etc. are all lying about is that the world is in a major recessionary contraction. In these circumstances surpluses develop because people cannot afford to buy as much as they did in the expansion phase. Food supplies will be in surplus for years to come and agriculatural prices will need to go down. It is just the way the economy works. It is hard to be optimistic about grain/meat prices.
Study the following article and contango and you will see why DBA, being futures based, is not a good long-term investment. That is why I channel trade it short term. I get my 2% or 4% and get out. I wait 2 weeks or 2 months and do it again.
Right now I'm down 2% hoping for a reversal, but I have only started my position, so it is small thus far.
DBA is back to the 200 DMA. Hopefully commodities, and thus DBA's futures, will take it all the way back to $27.00 range. If so, I will sell at that point and prepare to trade it again next month. Dollar is down big today, thus commodities are up.
it is what it is. Purely the futures pricee of such indicated agricultural commodities. To say it is crap may apply to a stock but this is not a stock as such. There is no profit and nno company and no balance sheet. If you think that the dollar will buy more corn and sugar in the months to come, then sell this. .. On the other hand , if down the road you believe that we will have to pay more for such products, then DBA is a buy. Jim Rogers thinks so .
DBA tracks agricultural commodities in accordance with the weighting of a particular Deutsche Bank index. If DBA isn't moving, that's because the index isn't moving. Look at other sectors of the commodities market for action. Right now DBB is on the move, and DBP will soon be going up again.
Debbie I owned this for a year & sold some time back as I gave up hope. This ETF is a piece of garbage. I was checking to see if this thing moved & it barely has; which I suspected. Buy MOO instead. Best of luck.