Monday, September 20, 2010

Article on Commodities Indices, Managed Futures & Diversification

As gold has continued to rally to all-time highs, there has been increased interest in gold, commodities, and managed futures as “diversification plays.” Indeed, these “assets” have been receiving increasing attention as true “asset classes” that offer good risk/returns and diversification benefits – for a traditional portfolio of stocks and bonds.
A “buy and hold” commodities approach has proven to be a solid diversifier over the years. However, just like “buy and hold” stock strategies have come under fire, the 2008 decline in commodities has led some investors towards actively “managed futures” as a good alternative investment.
During the 2008 financial crisis, many managed futures programs were able to profit from the extreme moves, with the Barclays CTA Index posting a +14.1% return.
For the complete article, please visit:

No comments: