Commodities – Raw Materials of Life

Commodities, what are they and should they be part of a balanced portfolio? We will explain what they are and provide some interesting aspects and ways to include in a portfolio. Some examples of commodities include: Water, metals, minerals, livestock, grain, electricity, natural gas, orange juice, etc. Emissions credits, bandwidth, foreign currencies, etc. Experts say that commodities offer strong returns in an inflationary environment. We have had tame inflation for many years and who knows what the future holds. Some experts say that about 5-7% commodities exposure offers good exposure to this market in a balanced portfolio. Here are a couple of funds that provide exposure to commodities: Blloomberg commodities index total return (ticker DJP) Power shares Global Water Index * This is not individual investment advice, please see a professional fiduciary advisor.    

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