Talk Your Book: Why Commodities Are Working

Today's animal spirits talker book is brought to you by PIMCO. Go to pimco.com to learn more about the PIMCO commodity strategy active ETF. That's ticker c m d t that we're gonna be talking about today. Pimco.com to learn more. Welcome to Animal Spirits, a show about markets, life, and investing. Join Michael Badnick and Ben Carlson as they talk about what they're reading, writing, and watching. All opinions expressed by Michael and Ben are solely their own opinion and do not reflect the opinion of Ritholtz Wealth Management. This podcast is for informational purposes only and should not be relied upon for any investment decisions. Clients of Ritholtz Wealth Management may maintain positions in the securities discussed in this podcast. Welcome to Animal Spirits with Michael and Ben. Michael, one of the things that I've read about a lot over the years is that commodities are not for investing. Commodities are for trend following. They're they're perfect for because they have such a boom bust cycle, and they can go years without working and doing pretty bad. And it's like when they work, they really work. So I think that trend following slash momentum indicators on these types of assets make a lot of sense to me. Thoughts? They are really working. Now now it's working. Right? Although I wonder how many people have gotten chopped up over the last few weeks with the the volatility. They do lend themselves to that because well, it's not to say there aren't underlying fundamentals because there is supply, demand, buying, selling, etcetera. But a lot of it a lot of the supply and the demand is driven by the price and by the behavior of the buyers and the sellers. Right. Did I just say a thing did I just say a lot without saying anything? I think I might have No. No. You're right. Like, they say the cure for higher prices is higher prices and the cure for lower prices is lower prices. You're right. It can so, we talked to Greg Sher now. He's a managing director and portfolio manager at PIMCO on their real assets team. And we talked about commodities and gold and everything around it. And he talked about how, you know, PIMCO, I think, is known as more of a macro type of portfolio management firm. Right? But he talked about how they use momentum and trend in their commodity strategy. So this is interesting talk. Here's our talk with Greg. Greg, welcome to the show. Thank you very much for having me. Alright. Today, we're talking about the PIMCO commodity strategy active exchange traded fund, the ticker of CMDT. And I guess this is a sign of the times that we're talking to PIMCO, and we're not talking bonds. We're talking commodities. So what is let's start at a high level. What is the underlying or overlying? Hey. What's the difference between those two phrases? Either way, what are we talking about …