Chapter 4
Feel the Love: Welcoming Commodities into Your Portfolio
IN THIS CHAPTER
Creating a financial road map
Designing a portfolio that includes commodities
Identifying the best ways to invest in commodities
Whether you’re an experienced investor or a first-time trader, it’s important to have a good grasp on how to use your portfolio to improve your overall financial situation. When designing your portfolio, you need to consider factors such as your risk tolerance, tax bracket, and level of liabilities. I start off this chapter by going through these basic portfolio-management techniques so that you can synchronize your portfolio with your personal financial profile.
In the second half of the chapter, I show you how to introduce commodities into your portfolio. I go through basic portfolio-allocation methods and include an overview of the benefits of diversification. In the last part of the chapter, I list the different investment methods you have at your disposal to get exposure to commodities, from index funds to master limited partnerships.
If you’ve ever wondered how to actually include commodities in your portfolio, you can’t afford to skip this chapter.
The Color of ...
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