Peter Brieger iPath DJ-AIG Commodity Index DJP-N TOP PICK Dec 28, 2007

Commodity index. Thinks inflation is going to pick up. With the growth of worldwide liquidity, investors are going to be looking at things as much as companies and will be looking at commodities in general.

He sees much higher inflation once the Fed finishes injecting liquidity and once that money percolates through the system. One of the key hedges against inflation is a broad basket of commodities and this is a commodity index. 38% is in oil/gas, 30% into a broad range of grains, 7% into livestock and the balance is split between precious metals and base metals.

The agricultural cycle is a generational play of 20 to 25 years. This is about 25% of the commodity index. For a more focused approach, see Top Pick (JJA-N).

(A Top Pick Nov 6/07. Down 33%.) 25% agriculture, 25% base metals, 25% precious metals and 25% energy. This was a convenient way for his clients to play these areas. Agricultural boom is not over.