Investing News Blog

Monday, June 05, 2006

Add Commodities to Your Portfolio

Two finance professors have researched the last 44 years of commodities futures prices and have found that they have averaged almost 1% a month since 1959 with average total returns each year at 11%. These figures consistently outperform stock returns but many people are unwilling to dabble into commodities and especially commodities futures saying that it is to much of a gamble. This story explains some history and figures for commodities and might change some peoples thinking, a diverse portfolio is the way to go and commodities have their place.

Precious Commodities
"Even if you have missed the run-up in copper, oil and gold so far, you ought to think about adding hard assets to your portfolio. Futures give you a kind of diversification you can't get from stocks and bonds".
Forbes Money & Investing

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