Investing in Commodities: Popular Beliefs and Misconceptions
Journal of Asset Management, Vol. 13, No. 2, pp. 77-83, 2012
Posted: 12 Mar 2012
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: Suggested Citation