The U.S. consumer price index (CPI) has jumped to its highest annual rate since 2008, yet the housing components of the index (rent and owners’ equivalent rent) have decelerated considerably since the start of the pandemic (Figure 1). For the first time in nearly a decade, housing costs have risen more slowly than the overall CPI. While the headline inflation rate currently stands at 5.4%, the CPI for shelter (which includes rental payments and mortgages) has increased only 2.6% year on year. This is despite the housing market experiencing its broadest boom in at least two decades, with median sales prices reaching record highs in both real and nominal terms (Figure 2).
There is a risk of loss in trading futures. Futures trading is not suitable for all persons. While managed futures can help enhance returns and reduce risk, they can also result in further losses in a portfolio.
Studies conducted of manage futures as a whole may not be indicative of the performance of any individual CTA or CTA index.
A CTA index may not represent the entire universe of CTA’s, and in most cases, individuals cannot invest in these indices. The actual rates of CTA returns may be significantly different and more volatile than those of a CTA index.