For a long time investment advisors have relied on commodities as one of the asset classes in a diversified portfolio that is “uncorrelated” with stocks. In other words, commodity prices tended to increase when stock values decreased, and vice versa.
In the past few years, though, commodities have begun moving more in line with securities. For this reason, Rick has begun recommending clients invest less in commodities and more in managed futures to keep their portfolios diversified.
Financial writer Daisy Maxey interviewed Rick for an article discussing this trend. The piece, “Commodities track broad market more closely,” was published online in MarketWatch on October 12, 2011. You can read it here.
