Commodities: Tactical not Strategic
Commodity prices enjoyed a historic advance before the Great Recession as global economic growth expanded. Despite a rebound in growth after the Great Recession, an index of commodity prices now stands at the same level as it was in 1975. The natural question is to ask what the role of commodities is, specifically a commodity total return index, in a diversified portfolio. For long-term buy and hold investors, there is no role. Opportunities may arise, however, over shorter p