Minutes

AAII Orange County Chapter

Monthly Meeting, October 27^th, 2007

Oasis Senior Center

800 Marguerite

Corona del Mar, CA 92625

Reported by: Rex Chen

Title: Portfolio Diversification Through the Use of Managed Futures and Managed Futures Fund of Funds

Speakers: Zachary Oxman, Senior Trader, Wisdom Financial

Chapter President Bob Welge brought the meeting to order at 9:00 am. In the beginning of the meeting, Bob announce the AAII Orange County’s website and the resources available on the web, including meeting minutes from past events. Bob first discusses to the audience about alternative location change for future AAII OC meetings due to increase room costs. After addressing the issue and taking comments from the members, Bob introduce today’s speaker, Zachary Oxman to discuss about today’s topic on Managed Futures.

In this talk, Zachary first talks about the current market conditions including the high price in crude oil and gold as well as depreciation of the U.S. dollar in comparison with other currencies. Zachary then mentions that commodities are in growing demand, as indicated by near-term Managed Futures. Furthermore, Zachary describes commodities as basic necessities for China and India. An interesting aspect on speculating Futures is that it does not follow the stock market, but rather act as trend followers. Hence, Futures can perform well in both bullish and bear markets.

For the current market conditions, Zachary suggests these markets to be favorable: (1) trend followers (2) options selling, and (3) sector specific trading. However, when the market is going sideways and chopping, Zachary cautions that trend following may not perform well. For Futures investing, Zachary recommends the following websites as valuable resources:

http://www.nfa.futures.org/

http://www.cme.com

http://www.cbot.com

Following the conclusion of Zachary presentation, Bob adjourned the meeting at 11:00 am.