Why invest in commodities?

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Commodities have increasingly attracted attention over the past decade, with many commentators saying they should form part of all diversified portfolios. But what is the motivation behind this thinking?

Professional Adviser lists the top reasons to invest in this asset class 1. They are good diversifiers Commodity prices tend to be negatively correlated with other asset price movements. They are good diversifiers away from equities and bonds which often make up the bulk of most investment portfolios, according to Whitechurch Securities’ analyst Ben Seager Scott. He says: “Given how choppy markets have been, and are likely to be, asset class diversity is likely to be an important theme for both growth and income investors. There are various commodities to choose from, both hard ...

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