Commodities are among the most skittish investments. Not only do they react to global economic forces, they can seesaw with supply and demand, China's voracious appetite for raw materials and the weather.
Since commodities are tangible things that are mined or grown, they are hard to hold and often bought through futures contracts, which have their own peculiarities. Yet what is undeniable about commodities is that they are usually a good tracker of broad economic growth, inflation among producer prices and they run inversely to the dollar's decline. You should have a piece of them in your portfolio, but you have to be careful about how you hold them...............................................Full Article: Source
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