29.07.2013 - Commodities: How the credit crunch has turned the equities relationship on its head
A report by the Bank for International Settlements (BIS) released last week defies conventional wisdom to suggest commodities do not diversify investments at all. A new study released last week is causing a bit of a buzz in commodity markets. Traditional wisdom dictates that investing in commodities is supposed to act as a portfolio “hedge” and reduce overall volatility. However, the report by the Bank for International Settlements (BIS) released last week suggests commodities do not actually diversify investments at all. “The popular view that commodities are to be included in one’s portfolio is not grounded,” said the study, by Marco J. Lombardi and Francesco Ravazzolo...............................................Full Article: Source
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