Chapter 2
Earn, Baby, Earn! Why You Should Invest in Commodities
IN THIS CHAPTER
Examining recent historical performance
Profiting from global economic trends
Considering the unique characteristics of commodities
Investing in commodities across the business cycle
Commodities have traditionally been considered the black sheep in the family of asset classes. For several decades, no respectable money manager wanted anything to do with them. This traditional lack of interest (which no longer applies, by the way) has generated a lot of misinformation about commodities. As a matter of fact, probably no other asset class has suffered through so much misunderstanding and misconception.
Many investors are scared of venturing into the world of commodities. For one thing, it seems that every time the word commodities is uttered, someone pops up with a horrible story about losing their entire life savings trading soybeans, cocoa, or some other exotic commodity. Even though this negative perception is rapidly changing, commodities are still often misunderstood as an investment. I actually know ...
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