The hot commodities market has lured a number of investors into commodity-based mutual funds from companies like PIMCO. An arcane tax-ruling from the IRS is putting the tax status funds into limbo. Eleanor Laise in the Wall Street Journal reviews the implications of the ruling.

One word describes what CNN/Money believes is in store for hedge funds in 2006: more. More regulation, more institutional funds, and more consolidation. However with the cost of launching a hedge fund increasing, expectations are for fewer start-ups.

Roger Nusbaum in reviews the disappointing performance of call-writing funds, but is not jumping ship.

Eric Jacobson at checks in with two bond market luminaries to get their opinion on the year ahead. Both see problems with credit, but are split on the overall direction in interest rates.

The normally crystal clear, Jonathan Clements at the Wall Street Journal provides some murky advice in regards to porfolio rebalancing. On one hand rebalancing is generally viewed to be a good thing, but on the other hand it may not pay to do it too often.

“There’s significant evidence of momentum in asset-class returns, so you don’t want to rebalance too often,” says William Bernstein, an investment adviser in North Bend, Ore. “If you’re rebalancing each asset class every three or four years, you’re probably doing it about right.”

John Spence at reviews a notable year for ETFs, including the status of long awaited “actively-managed ETFs.”

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