Chance Carson is founder and chief investment officer at Alpine Strategies in Colorado Springs, Colo. The firm uses exchange-traded funds, exchange-traded notes and closed-end funds in managing portfolios for high-net-worth investors.

On Friday, IndexUniverse.com Managing Editor Murray Coleman caught up with the veteran portfolio manager and analyst, who also runs an educational site at www.aboutetfs.com. Carson, who has been a money manager and analyst for more than 35 years, is currently designing portfolios with around 35% of Alpine's total client assets allocated to alternative investments.

HardAssetsInvestor (HAI): How is the government rescue plan for banks impacting commodities markets?

Chance Carson (Carson): The winding down of the banking sector crushed the commodities markets for about six weeks. But on Sept. 11, almost all of the commodities funds started to turn up. Many fell about 25-30% from the July peak until mid-September. Once the rescue package started to enter the scene, they shot up. Across the board, gold has led the surge. But agriculture and the diversified commodities baskets have dramatically bounced back as well.

HAI: Will that continue?

Carson: As soon as there's some solid plan in place for the government to rescue the U.S. economy, speculators will jump back into the market. Then, another shoe will fall and markets will resume their rally. We think this could go on for another six or seven years. This could be one of the best entry or reentry points for anyone wanting to diversify into commodities. We may not have reached the low point in this particular cycle, but we're pretty close.

HAI: What looks particularly attractive in that sense then?

Carson: Energy and alternative energy should take lead positions right now. We like ELEMENTS Rogers International Commodity ETN (RJI). It holds 36 different commodities with 45% in energy, 35% in agriculture and 20% in metals. So it's extremely well-diversified and covers the main bundles. For the best ETF, I'd suggest either PowerShares DB Commodity Index Tracking Fund (DBC) or iShares S&P GSCI Commodity-Indexed Trust (GSG). Those are funds with broad baskets. DBC is the largest and the oldest and most actively traded.

HAI: Are you using other ETFs or ETNs to drill down even more into commodities?

Carson: Yes; oil executive insiders are heavily purchasing their own shares. That's the largest repurchasing activity we've seen in any asset class currently.