| A small allocation to commodities is justified based on their diversifying properties, but this year’s strong performance is unlikely to continue, Schroders’ multi-asset team has claimed. Alastair Baker and Patrick Brenner, two managers on the team, said many investors had moved underweight or eliminated commodities from their portfolios, based on extreme underperformance since 2011 and a high correlation with equities.
More recently, however, commodities, as measured by the Dow Jones-UBS Commodity index, have enjoyed a stronger 2014, outperforming equities and bonds in the first half of the year...............................................Full Article: Source
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