Why should investors consider an allocation to active commodities and why now.
Over the past 14 years we have been living in a world of artificial prices for financial assets supported by the ever-increasing quantitative easing, low volatility, and unusually low dispersion. All of that is now changing.
Commodities have outperformed other asset classes in 2022 after being a forgotten asset class for over a decade.
Commodities are a volatile asset class, but active commodity strategies can deliver superior risk adjusted returns by taking advantage of idiosyncratic supply and demand dynamics and the significant dispersion of individual returns. More importantly, they can protect from the significant drawdowns that are characteristic of long only passive investments, i.e., ETFs.
In the following thought-piece we cover...
- Why should investors consider an allocation to active commodities and why now
- Commodity Price Super-Cycles
- Commodities vs Stocks and Bonds
- The Case for Commodities: Supply Constraints, Demand, Inflation, Ownership
- Active Commodity Investing
- Commodities: The Next Frontier (China)