On Commodities as an Asset Class
Thursday, July 22nd, 2010
Larry MacDonald submits:
A new book by John Stephenson is focusing attention once again on commodities as an asset class with long-run returns equivalent to stocks, lower volatility and no correlation to stocks. It might be supposed adding commodities to portfolios makes sense for at least U.S. investors because of the low representation of commodity producers on U.S. exchanges. But even for this group, the view of commodities as a way to lower portfolio risk and/or enhance returns may be one past its “Best Before” date.
