FYI: Conventional wisdom has it that investors should devote a small portion of their portfolio to commodities to increase diversification and enhance risk-adjusted returns.
But many experts say that advice is exactly wrong: Commodities don’t make sense as a long-term investment, and most clients should avoid them. The primary reason is returns—more accurately, the lack thereof. The inflation-adjusted Economist commodity-price index has returned close to zero since 1871, reflecting the up-and-down pattern of the asset class over the years.
Regards,
Ted
https://www.wealthmanagement.com/print/109316
