| Institutional investors are wondering whether investing in commodities is worth the trouble, as the asset class has suffered an annualized return of -6.46% in the 10 years through June 30. Indeed, the Bloomberg Commodity index has been negative each month for the past 12 months. The Bloomberg Commodity Total Return index, which includes the return of the collateral, showed a return of -5.48% over the same 10-year period.
Asset owners traditionally have invested in commodities as an inflation hedge and for diversification. While some are maintaining their allocations to protect against unanticipated inflation, the asset class' volatility and poor returns have other investors moving out...............................................Full Article: Source
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