Commodities In Trust PortfoliosCommodities In Trust Portfolios
While investing in commodities ranks among the oldest of financial endeavors, commodities today are underrepresented in most trust portfolios because of the widespread perception that they represent a volatile and risky asset class. Also, investing in commodities themselves has produced over the long term a return that is roughly equal to the rate of inflation. But a more in-depth analysis shows that
David Rosenberg, head, U.S. Investment Solutions, and Ajay Badlani, head, U.S. Investment Analyti
While investing in commodities ranks among the oldest of financial endeavors, commodities today are underrepresented in most trust portfolios because of the widespread perception that they represent a volatile and risky asset class. Also, investing in commodities themselves has produced over the long term a return that is roughly equal to the rate of inflation.
But a more in-depth analysis shows that historical returns for commodities-futures indexes demonstrate a low correlation with both equities and bonds. Thus, including a commodity-futures index in a portfolio of stocks and bonds could reduce risk in most portfolios, making them a suitabl...
Unlock All Access Premium Subscription
Get Trusts & Estates articles, digital editions, and an optional print subscription. Choose your subscription now and dive into expert insights today!
Already Subscribed?
