Author Topic: Are commodities the worst kind of asset.  (Read 1644 times)

terrier56

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Are commodities the worst kind of asset.
« on: January 02, 2015, 02:57:19 PM »
Found an article I wanted to share. It reinforces the idea of randomness in the market and it is impossible to pick the winner in any given year. so just load up and spin the wheel. weeeeeh

http://awealthofcommonsense.com/updating-favorite-performance-chart/

dungoofed

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pbkmaine

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Re: Are commodities the worst kind of asset.
« Reply #2 on: January 03, 2015, 06:48:21 PM »
They aren't good or bad. What makes them worthwhile is their low correlation to other asset categories. Low correlation is the holy grail of asset allocation. Stocks, bonds and cash have relatively low correlations to each other. That's why most financial planners suggest holding some of each. The more uncorrelated your portfolio is, the better able it is to withstand various types of market craziness.

arebelspy

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Re: Are commodities the worst kind of asset.
« Reply #3 on: January 03, 2015, 09:56:06 PM »
MOD NOTE: Duplicate thread.  See second post.  Locking thread.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with two kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.