|If your focus is asset allocation and youíre not concerned with market timing, you donít need to bother reading any further. As the research on efficient frontier shows, including commodities in your asset allocation is a benefit in the long run in terms of return for a given level of risk. However, if you do shift your allocation actively, there are technical reasons to have little or no allocation to commodities markets right now; i.e. avoid commodities.
As the recovery from the depths of the financial crisis found its legs, a lot of us were lulled into thinking risk-on always involved buying stocks, the euro and commodities. And for a while it did. But that nice, clean risk-on/risk-off phenomenon which was easy for market reporters to write about (and the high correlations that drove hedge funds crazy) ended earlier this year. ......................................Full Article: Source