Investing in commodities has an attraction unlike any other markets – because, one reckons, this is REAL. An actual asset, which can be used (like copper) or has been invested in since the early days of civilization (like gold) making them a safe haven investment.
But, data shows that though commodities provide significant diversification to a portfolio of stocks and bonds, it is ideally a tactical short to medium term investment. In the long run, investing in equities has created significantly more wealth than in any commodity. But, if your time horizon is between a few months to a year, commodities can provide outsized returns for a small portfolio.
The thought of investing in Gold has been a recurrent theme since the recent recession – especially with the amazing rally in the yellow metal over the past few years. The safe haven status is always mentioned in this context. But with the recent correction, questions are being raised about its direction.
The Oil and Gas markets react violently to political events unlike nearly any other investable markets, while Copper tends to react to longer term trends in production and manufacturing.
Our team of analysts can help you through the quagmire of issues in commodities investing by providing global and US macroeconomic updates, with political commentary on those sensitive regions which make these markets move.