| Negative real interest rates, coordinated money-printing by Bernanke and his international counterparts, rising emerging markets--little wonder that commodity fund assets have tripled since the commodity-price peak in mid-2008.
It helps that back tests show long-only, futures-based commodity indexes had equitylike returns and little correlation to the markets, the holy grail of portfolio diversification. The rush to carve out a static allocation to commodity indexes such as the S&P GSCI or the DJ-UBS Commodity Index is, in our view, suboptimal behavior...............................................Full Article: Source
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