Author Topic: Are commodities the worst kind of asset.  (Read 2360 times)

terrier56

  • 5 O'Clock Shadow
  • *
  • Posts: 99
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

  • Pencil Stache
  • ****
  • Posts: 661

pbkmaine

  • Walrus Stache
  • *******
  • Posts: 8927
  • Age: 67
  • Location: The Villages, Florida
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

  • Administrator
  • Senior Mustachian
  • *****
  • Posts: 28444
  • Age: -997
  • Location: Seattle, WA
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.
I am a former teacher who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and am now settled with three kids.
If you want to know more about me, this Business Insider profile tells the story pretty well.
I (rarely) blog at AdventuringAlong.com. Check out the Now page to see what I'm up to currently.