- Anyone with a commitment to commodities over the past few decades of prominent disinflationary forces has endured considerable pain.
- In this blog, we attempt to make the case that something that lost over 12% a year on average for more than a decade could play an interesting role in an investor's portfolio.
- Given the rate environment and the potential for reflation, a larger fixed income allocation can be offset by more commodity exposure.
- Commodities had a challenging bear market up until recently, but they will certainly prove useful if inflation concerns are present due to monetary and fiscal policy stimulus.
For further details see:
How Commodities Can Play An Increasingly Important Role In Portfolio Diversification