26.07.2013 - Don’t count on commodities for portfolio diversification
Commodities do not diversify an investment portfolio, according to new research by the Bank for International Settlements (BIS), overturning conventional wisdom that including commodity futures can reduce the volatility of returns. Beginning in September 2008 and continuing through 2012, commodity and equity prices have shown heightened correlation, Marco Lombardi and Francesco Ravazzolo argue in a paper “On the correlation between commodity and equity returns” published on July 11...............................................Full Article: Source
Print