It’s Slow Going, but Stuff Like Wheat and Oil Can Spice Up Your Returns

Image Credit: Alex Nabaum

The best time to get interested in an investing strategy is when its performance is at its worst. By that standard, commodities are starting to look intriguing.

These assets — oil and gas, corn and wheat, cattle and hogs, nickel and tin, silver and gold and so on — have been stinking up the joint ever since investors raced to buy them during the financial crisis. Even so, new research suggests that commodities may deserve a small place in the portfolios of iconoclastic investors who have plenty of patience. 

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This article was originally published on The Wall Street Journal.


Further reading

Benjamin Graham, The Intelligent Investor

Geetesh Bhardwaj et al, “The Commodity Futures Risk Premium, 1871-2018

Christophe Spaenjers, “The Long-Term Return to Durable Assets

Claude B. Erb and Campbell R. Harvey, “Conquering Misperceptions about Commodity Futures Investing