| One of the biggest draws to commodity investing has long been its low correlation to equities. Investors would add commodity exposure to their portfolios to help diversify returns, as the movement in commodity markets had long been independent from that of equities. But 2012 is doing its best to redefine the rules, as it seems that commodities have begun to show an increased correlation to major equity benchmarks.
“The S&P GSCI composite index of commodity sector returns only added 0.52% so far this year, compared to 11.99% for the S&P 500. During the same period, the weekly correlation between the S&P 500 and the S&P GSCI has been about 0.49, compared to an average of about 0.15 between January 1976 and December 2011,? wrote Thao Hua last month...............................................Full Article: Source
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