The secret is out! Major brokerage firms have failed to be as fair and open with their "cherished" retail clients as they should. As a result, these last few years have proven to be painful for many investors. But that's only half the story! Not only have they issued 'buy' or 'hold' recommendations on stocks that, in truth, turned out to be outright "dogs", but major brokerages have also, as a general policy, withheld from you investments that, as studies have repeatedly shown, can potentially increase performance and reduce risk in an overall portfolio!

Ask yourself: Why have many of the largest brokerage houses attempted to keep these investments under wraps? Just as major brokerages will avoid losing investment banking business by issuing sell recommendations on companies from whom they derive substantial revenues, so too, we believe, will they avoid telling you about this established investment because they fear losing business from you, their retail customer. Most major brokerages stick to their bread-and-butter stocks and don't offer this investment! Yet institutions and savvy investors have, for quite some time, made a place for this investment in their portfolios-to the tune of over $35 billion dollars!

The investment we are referring to is professionally managed futures! Surprised? Don't be. There is a big difference in the results between amateurs and professionals trading futures. If an unskilled person attempted to practice law or medicine, they'd probably perform quite poorly, just like many non-professional, amateur futures traders. So it comes as no surprise that in the highly complex and challenging world of futures trading, the vast majority of non-professional, amateur futures traders do lose. However, experienced professional commodity trading advisors (CTAs), have been shown to achieve consistent returns through prudent money management. Additionally studies have also shown that managed futures are no riskier than stocks. Bear in mind that the risk of loss exists no matter who is managing your money, and that the potential exists in futures trading to lose more than your initial investment.

What are 'CTAs' and How Can They Help You?

Commodity Trading Advisors (CTAs) are licensed by the U.S. government and its appropriate regulatory agencies. CTAs manage investors' assets using futures market-related investments, similar to a registered investment advisor who invests his client's assets in a variety of stocks. However, unlike many stock fund managers, CTAs can potentially capitalize on rising, falling and lackluster markets. CTAs bring to futures trading many of the same benefits that equity managers bring to the management of stock and bond funds.

Mutual Funds and Managed Futures: A Comparison

Modern Portfolio Theory and its Implication for You

Pension funds and sophisticated investors have long relied on Modern Portfolio Theory (MPT) in attempting to obtain the highest returns with the lowest level of risk. The premise underlying Modern Portfolio Theory tells us that the risk of any investment can be reduced and performance increased by holding a number of non-correlated investments in a variety of differing asset classes. Non-correlated investments, by design, do not move in lockstep with one another. The father of MPT, Dr. Harry Markowitz, cautioned investors 50 years ago "holding securities that tend to move in concert with each other does not lower risk." Dr. Markowitz concluded that a diversified portfolio comprised of investments non-correlated with securities could provide the highest returns with the least amount of risk.

Offering almost a zero correlation versus stocks, professionally managed futures fit this description quite nicely.

Findings on Managed Futures Brought to Light

In what is considered a landmark study, Dr. John Lintner of Harvard University, in 1983, presented his paper "The Potential Role of Managed Futures Accounts in Portfolios of Stocks and Bonds." Lintner concluded that "The combined portfolios of stocks after including judicious investments in managed futures accounts show substantially less risk, at every possible level of expected return, than portfolios of stocks (or stocks and bonds) alone."

In further support of the conclusions reached by Mssrs. Markowitz and Lintner, the Chicago Mercantile Exchange (CME) published a study which stated that portfolios with as much as 20% in managed futures can yield up to 50% more than stock and bond portfolios, while offering comparable risk.

The Chicago Board of Trade (CBOT), in their highly informative brochure, "Portfolio Diversification Opportunities," incorporated a graph entitled "Potential Impact of Managed Futures on the Traditional Portfolio, January 1980 - December 2001." The graph illustrates how a portfolio without managed futures under performs, and is riskier than, a portfolio that includes managed futures. The portfolio that exhibited the highest returns and least amount of volatility comprised 41% stocks, 41% bonds and 18% managed futures.

Actual performance of stocks and managed futures, as shown in the CBOT publication, show how managed futures have remained positive even during some of the stock market's worst periods of decline!

Past performance is not indicative of future results. The risk of loss in futures trading can be substantial. An investor could potentially lose more than the initial investment.

Managed Futures and Portfolios: A Provocative Statement

Managed futures have long been employed in connection with diversifying institutional portfolios. One such example is Harvard University. Jack Meyer, the chief executive of that school's endowment fund regularly includes commodity, and financial futures-related instruments in the portfolio. In fact, this proponent of Modern Portfolio Theory has placed himself on record by stating, "Holding commodities offers protection against the ups and downs of stocks and bonds; they're the most diversifying asset in the portfolio. The benefits of diversification are indisputable; diversification rules. It's powerful and our portfolio is a good deal less risky [with commodities] than with only the S&P 500."

Are Managed Futures Riskier than Stocks?

Thomas Schneeweis, Professor of Finance, at the University of Massachusetts, in his 2002 academic study "Benefits of Managed Futures," destroys the myth of managed futures as investments that are riskier than stocks. According to Schneweis "Managed futures are not any more riskier than traditional equity investments. Investment in a single commodity trading advisor is shown to have risks and returns, which are similar to investment in a single equity. Moreover, a portfolio of commodity trading advisors is also shown to have risks, and returns, which are similar to traditional investments." The paper was prepared for educational purposes and does not address the significant risks inherent in futures trading. Futures trading is not suitable for all investors. An investor could potentially lose more than the initial investment.

Commodities Are The Place To Be!

Many believe, we have entered a new phase of lackluster and lower returns for the stock market. Consider the fact that according to a December 17, 2002 article in the Wall Street Journal, Goldman Sachs earned more money from commodity trading than in stock trading in 2001, and 2002. In 2002 alone, they earned $3.6 billion trading commodities, compared to $800 million in stock trading.

Isn't it both wise and prudent to shift one's investment focus to the areas that can potentially provide the greatest investment opportunities? Some experts liken commodities to stocks and bonds in the early 1980s. Both embarked on one of the great bull markets after a long period of sluggishness. Think opportunity and think long term. Many believe we're at the "sweet spot" of the economic cycle for commodities, representing a classic opportunity for investors.

Stocks had their day for quite some time. Now commodities are having their day. For example, at year end 2002, Barron's stated, "Commodities also offered a compelling alternative with oil up 64%, to $32.47 a barrel, and gold ahead 25%, to $344.80 an ounce." Other commodities also shined in 2003. Compared to the major stock indices that were all down, the major commodity indices were all up, led by the Dow Jones-AIG Commodity Index, which jumped 24%. Contributing to the Index's rise were platinum, soybeans and cocoa, which rose 23%, 32% and 54%, respectively. . Please note that the prices mentioned are cash prices. Customers will be trading commodity futures and options on futures contracts.

Many believe stocks are still expensive and commodities remain cheap.

While the party in stocks is over, the party in commodities is just beginning. While stocks are mired in a secular bear market that will probably last at least 10 years, the commodity markets are finally awakening to the unstable geo-political and economic events of our time! Many believe the secular bear market in stocks will cause stocks to under perform for the next decade while commodities will offer tremendous opportunities. The risk of loss in trading futures can be substantial. An investor could potentially lose more than the initial investment.

Free $95 Investors Kit

The best way to understand what managed futures are all about, including its risks, rewards, benefits and practical applications, is explained in our Investors Kit. The Kit, normally available at a cost of $95 is being made available free of charge to investors for a limited time only!

The Free Investors Kit includes an:

- Audiotape with an easy-to-understand, informative narrative focusing on the unique advantages of managed futures in a diversified portfolio.

- Videotape interview with one of todays most successful money managers, allowing you to share his 'secrets to success'.

- Question and Answer report covering the most frequently asked questions on managed futures.

- Comprehensive, gorgeous color brochure, "Modern Portfolio Theory, Dynamic Diversification for Today's Investor," including sample managed futures portfolios for investors.

You could spend upwards of $1,000 on managed futures books and seminars, but you probably wouldn't learn as much useful information as you would by simply digesting the contents of our Investors Kit. And although the Kit is worth every bit of its $95 price, you can have this indispensable, highly informative package absolutely free-ONLY WHILE SUPPLIES LAST!

If ever there was a time to learn about managed futures, it's now! Managed futures can help protect your portfolio from stock market volatility, while increasing returns and reducing risk. Discover how and why in our free, easy-to-understand Investor's Kit. Reply now!

Receive a Special Bonus

Act now and we'll send you the Special Report, "Secrets To Successful Investing!" Learn the secrets of the pros! Why do many investors lose money? What are the key mistakes investors make when investing? What should you look for when selecting an investment? How can you increase your chances for successful investing? All this and more is in our Special Report!

Learn about managed futures, "one of the best kept "secrets" major wire houses don't want you to know", in our free Investors Kit!

To receive your free Investor's Kit, at absolutely no obligation, fill out the form below. For faster service, call 1-800-248-2646 or fax 212-859-0250. Act now while supplies last! (Your reply will be held in strict confidence. We don't engage in the practice of selling our client lists.)

P.S. Professionally Managed Futures can be used in your existing qualified retirement plans including IRAs, SEPs, 401s and Trusts.

P.P.S. Incidentally, the majority of our Commodity Trading Advisors' primary income is derived only when you, the investor, make money!

The risk of loss in trading futures can be substantial. An investor could potentially lose more than their initial investment.

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