Highly selective: Taking a tactical approach to commodities

This year, investment returns have not been kind to those who have tried to play last year's winners. The best performing asset class in 2014 is real estate, followed by commodities and inflation-linked debt. The arguments for property are well-known: the superior income yield compared with other assets and the broadening out of the economic recovery are positive drivers. As for the others, both also represent real rather than financial assets and tend to come into their own when there are perceived macro or political problems, or doubts about valuations on the financial side, such as...