EXTRACT



FROM “MYTHS OF COMMODITY INVESTMENT”

 Myth: Commodity Based Investments Are Riskier Than Stock Investments.

While few investors would question if stocks are riskier than bonds (although in certain market environments such as high interest rate volatility some bonds are expected to be riskier than some stocks), most investors believe that direct commodity investment is by nature riskier than investment in stocks. Research results show that, over the period 1991-2008, a Composite Commodity Index* had an annual volatility (15.7%)  similar to that of the S&P 500 (14.4%) and a maximum drawdown (-48.8%) roughly equal to that of the S&P 500 (-44.7%).


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