Investing in Commodities: Popular Beliefs and Misconceptions

Journal of Asset Management, Vol. 13, No. 2, pp. 77-83, 2012

Posted: 12 Mar 2012

See all articles by George S. Skiadopoulos

George S. Skiadopoulos

University of Piraeus, Department of Banking and Financial Management; Queen Mary, University of London, School of Economics and Finance

Date Written: March 10, 2012

Abstract

Over the last decade institutional and individual investors have increased their allocated share of wealth to commodities immensely. In this short article, we discuss some common beliefs and point out the misconceptions on the motivation for investing in commodities, whether commodities should be included in investors’ portfolios and how investors should measure the performance of commodity funds. The expressed ideas can enhance investors’ interest in this fascinating asset class.

Keywords: Asset allocation, Hedging pressure, Commodity futures, Commodity Index, Performance evaluation

JEL Classification: C31, E44, G12, G13, G21

Suggested Citation

Skiadopoulos, George and Skiadopoulos, George, Investing in Commodities: Popular Beliefs and Misconceptions (March 10, 2012). Journal of Asset Management, Vol. 13, No. 2, pp. 77-83, 2012, Available at SSRN: https://ssrn.com/abstract=2019529

George Skiadopoulos (Contact Author)

Queen Mary, University of London, School of Economics and Finance

Lincoln's Inn Fields
Mile End Rd.
London, E1 4NS
United Kingdom

University of Piraeus, Department of Banking and Financial Management ( email )

80 Karaoli & Dimitriou Str.
18534 Piraeus, 185 34 -GR
Greece

HOME PAGE: http://https://sites.google.com/view/george-skiadopoulos

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