The Money Mustache Community

Learning, Sharing, and Teaching => Investor Alley => Topic started by: terrier56 on January 02, 2015, 02:57:19 PM

Title: Are commodities the worst kind of asset.
Post by: terrier56 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/

Title: Re: Are commodities the worst kind of asset.
Post by: dungoofed on January 03, 2015, 05:57:10 PM

lol http://forum.mrmoneymustache.com/investor-alley/asset-performance-chart-(a-wealth-of-common-sense) I replied here

Title: Re: Are commodities the worst kind of asset.
Post by: pbkmaine 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.

Title: Re: Are commodities the worst kind of asset.
Post by: arebelspy on January 03, 2015, 09:56:06 PM

MOD NOTE: Duplicate thread.  See second post.  Locking thread.