Commodity

Commodity

Plural Name
Commodities

Commodities come with returns that are substantially independent of stock and bond returns. Mixing in broad commodity exposure with stocks and bonds can help significantly diversify a portfolio, potentially reducing the risk of an overall portfolio and boosting returns. Given their impact on consumer goods prices, this distinct asset class can also offer a hedge against inflation.

Gold

Book

2014

  • An increase in insider investments (private deals) in the commodity space can often foreshadow an upcoming increase in related commodity and share pricesĀ 
  • Comparing the S&P GSCI Index to the S&P 500 Index can give an indication of when commodities are relatively cheap or expensive