Not sure if there are elitetraders who have been around for so long to answer this question. During the 1970s, commodities boomed while stocks crashed. Was it easier to make money shorting index futures than longing commodity futures during 1970s? As a futures trader, what is your preference today to make money when this long stock bull market dies and the bear takes over? EDIT: I just realized stock index futures didn't exist in 1970s. Alright. Given a choice, would you prefer shorting index or longing commodity futures if the inflationary 1970s market conditions return?
I’m rolling my short position in index futures at each expiry. It’s basically off of FED cycles in liquidity.
If you were better at shorting stocks than longing commodities it would have been easier to do so. And vice versa. Also going long commodities would require quite a different strategy than shorting stocks.
I wasn't alive then, but I would imagine commodities would make better candidates than stocks for trend trading back then. Commodities markets of the 1970s were notorious for runaway one-directional moves due to it being an inflationary era. Wasn't uncommon to see grain markets go locked limit-up for 5 or 6 days in a row at times (interviews in Market Wizards). Stock indices have never have never had that type of relentless persistence - up or down.