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Smart Reasoning:

C&E

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Qaagi - Book of Why

Causes

Effects

Still , the CFTC has votedto setcontract limits on index fund investing in commodities

big Wall Street firms(passive) were created byCommodity index funds , investments tied to the value of a basket of commodity futures

the Feds action of raising interest ratespromptedindex fund selling in futures

a significant predictor of price volatility in goldcontributethe futures price level for the commodity index

Just because Blooom tendsto leadtoward investing in index funds

Investment bankscreatedindex funds based on these futures prices

contango(passive) caused bycommodity futures ETFs

The optimal index is the most idealwhen creatinga price index of stock index futures contracts

a rallysetsstock index futures , commodity futures

a “ bubble “ in commodity prices ... with the result that prices , and crude oil prices , in particular , far exceeded fundamental values at the peakcreateda “ bubble “ in commodity prices ... with the result that prices , and crude oil prices , in particular , far exceeded fundamental values at the peak

to rise 38 % this year to $ 110 billionis setto rise 38 % this year to $ 110 billion

returns during inflationary periodscontributereturns during inflationary periods

limitless number of trading instrumentsCreatelimitless number of trading instruments

a ‘‘bubble†™ †™ in commodity prices ... with the result that prices , and crude oil prices , in particular , far exceeded fundamental values at the peakcreateda ‘‘bubble†™ †™ in commodity prices ... with the result that prices , and crude oil prices , in particular , far exceeded fundamental values at the peak

to surge in pricesleadingto surge in prices

exposure to different investmentscan createexposure to different investments

massive price bubbles—20 , 30 , 50 % overvaluationscreatedmassive price bubbles—20 , 30 , 50 % overvaluations

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Smart Reasoning:

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