A compelling case for commodities
Following a number of years of poor performance from this asset class, we feel it is time to re-evaluate the case for commodities within the context of a broad portfolio
Commodities are now cheap, having fallen from record highs, some have fallen by up to 60% from their peak.
We believe that there is a growing risk of rising prices in the future. Investing in commodities will help to protect against the risk that inflation has not properly been priced into investment portfolios
Looking at the extreme levels of valuations of other asset classes, we believe it is time to consider other options, particularly those with a low correlation to fixed income and government debt.