Investing in Commodities

Tom Lydon

Historically, commodities have been viewed as a completely separate asset class. Areas such as gold and oil have become known for their volatility. But commodities rarely correlate perfectly to the world’s stock markets. Because commodities operate along their own individual trends and are now available in Exchange Traded Fund (ETF) form, they can make excellent additions to any portfolio.

Today, you now have many options for participating in a commodities bull market. You can find futures, physical commodities, or baskets of stocks consisting of commodities producers. This hasn’t always been the case, however. Before the influx of ETFs, you, as an individual investor, were simply left out in the cold. For decades, ...