Barry Ritholtz: Here comes the commodity index rebalancing

11:11a ET Wednesday, January 7, 2009

Dear Friend of GATA and Gold:

Market analyst Barry L. Ritholtz, director of equity research for Fusion IQ in New York, expresses skepticism about the "rebalancing" of the Dow Jones commodity index to diminish the gold component and increase the oil component. Ritholtz writes:

"In a time of massive Fed credit creation and Treasury money printing, they oddly want less exposure to gold. And with the worldwide recession getting worse, they want more exposure to oil. Both of these are poorly timed macro-trades."

With so much market manipulation running around in the open these days and becoming such a commonplace, it's nice for someone to notice and care about the possibilities here too.

Ritholtz's observations are headlined "Here Comes the Commodity Index Rebalancing" and you can find them at his Internet site here:

http://www.ritholtz.com/blog/2009/01/here-comes-the-commodity-index-reba...

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

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