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.”

Thanks to all the new readers of this blog. Please feel free to sign up for our RSS feed here.

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Please see disclosures here.

Please see the Terms & Conditions page for a full disclaimer.