Asset Classes

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.

More About Commodity

  • 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