The products are commodities such as metals, grains, oil, and electricity, produced or sold by different companies with the same quality compared to the other of each company. This means that if you compare both of Company A, B, C and D, they can not be distinguished from each other. Here are some reasons why you should invest in this sector.
The primary reason for the investment will be as it may come as a solution for investors to protect their property, especially during periods when the economy does not and inflate prices. Unlike other property that inflates in price during the economic downturn, the prices of commodities will increase instead. They are not correlated with other assets, and the only form of investment has a negative correlation with bonds. To add to these differences in investment can not be affected by events such as war risk, financial crises, and geopolitics, allowing investors to hedge against this risk. So they are a safe investment to reduce volatility and a great addition to our portfolio, which should be constructed to be able to accept the risk.
Also, if you look from the perspective of an investor's perspective, this investment will increase their portfolio as an expected return as a whole can be improved, especially when there is a risk event, where stocks and bonds decline at least for investment in assets will offset or exceed the losses suffered because of the money you must pay damages. It was found that he could not get a return on diversified investments that are similar to U.S. stocks.
Despite all this, they may pose a risk to themselves and can be volatile. So make sure you have a plan asset allocation so that the solid risk-adjusted return will be higher.
The primary reason for the investment will be as it may come as a solution for investors to protect their property, especially during periods when the economy does not and inflate prices. Unlike other property that inflates in price during the economic downturn, the prices of commodities will increase instead. They are not correlated with other assets, and the only form of investment has a negative correlation with bonds. To add to these differences in investment can not be affected by events such as war risk, financial crises, and geopolitics, allowing investors to hedge against this risk. So they are a safe investment to reduce volatility and a great addition to our portfolio, which should be constructed to be able to accept the risk.
Also, if you look from the perspective of an investor's perspective, this investment will increase their portfolio as an expected return as a whole can be improved, especially when there is a risk event, where stocks and bonds decline at least for investment in assets will offset or exceed the losses suffered because of the money you must pay damages. It was found that he could not get a return on diversified investments that are similar to U.S. stocks.
Despite all this, they may pose a risk to themselves and can be volatile. So make sure you have a plan asset allocation so that the solid risk-adjusted return will be higher.
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