Commodities are frequently disregarded as part of an investing portfolio, with many financial consultants advising stock and bond allocations (or funds holding those two asset classes). However, other experts suggest that investors' portfolios require more diversity to help decrease risk and level out returns.
Here are some things to think about before investing in commodities, including numerous options for doing so and a few pitfalls to avoid.
What to Look Out For When Investing in Commodities
Investors may talk about commodities as if they're all the same thing, but commodities are made up of hundreds of different goods, each with its own supply and demand dynamics.
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