25.04.2014 - Indecent exposure [to commodities]
Before there were alternative investments ("alts") or hedge funds, having some exposure to commodities, served as a good way to diversify a portfolio against stock market volatility. Historical correlations to the stock market are rather low, or at least sporadic, and owning commodities can also be seen as a hedge against inflation (higher costs of raw goods). However, since the price of crude oil cratered from $150 per barrel all the way down to $40 back in 2008, the commodities asset class as a whole has been more or less shunned. Despite the price of oil having somewhat recovered -- it currently trades around $100 -- now might be a good time to un-shun...............................................Full Article: Source
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