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After the Gold Rush: The Strategic Role of Commodities in Portfolios
The dramatic rally that sent gold prices above $4,300/oz before giving back some gains has dominated headlines. We believe investors also should consider the secular forces behind many commodity markets, and the potential of broader commodities to offer attractive return potential and to help diversify portfolios. Despite recent volatility in gold prices, the overall surge in value in the past year has surpassed even that of the S&P 500. Several factors are behind gold’s climb: 1) purchases by central banks, especially in emerging market countries, seeking to diversify reserves and protect against asset ... (full story)