JKC1967

Craig Israelsen: Commodities Provide Good Diversification

One other question/comment: Have their ever been any studies done re: allocation to pure commodities, versus allocation to a sector equity index? Do the sector equity indexes capture the same effect as the pure commodities?

Craig Israelsen: Commodities Provide Good Diversification

Excellent summary Tim. I actually read the same article over HAI a couple days ago (you're right, its a GREAT site), and you're article summarizes it nicely as well. You're six asset portfolio, minus the cash, is what I have in my son's 529 account for college, and reading this really made me think how great it'd be if 529 plan I am in added commodities as an investment!

Despite Recent Correction, DBC Remains a Solid Long-Term Holding

Excellent article - author has hit the nail on the head. Couldn't think of a better example of this then the first three months of this year. Big run-up in commodities while stocks were tanking, then when a mini-rally in stocks occured commodities fell. Real value of commodities exposure in an overall portfolio is their diversification effect over the long-term, the zig when the market zags as the author states. Good, common-sense article.