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Commodities Briefing - Categorized | Commentaries, Commodity Crisis, Market Moves more

7 reasons to avoid commodities and why they’re wrong

Posted on 02 July 2013

One of the most contentious debates in finance is whether investors should consider including an allocation to commodities in their portfolio. The reason for considering including commodities is that they act as a form of portfolio insurance.
Commodities have been shown to hedge the risks of unexpected inflation, tending to perform best during periods of rising inflation, when nominal return bonds do poorly. Commodities also have been shown to hedge supply shocks that hurt stock returns (such as the oil embargo of 1973-74), though not demand shocks to the economy (such as the financial crisis of 2008). ……………………………….Full Article: Source


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VRS - who has written 39021 posts on Opalesque Commodities Briefing.


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