mathjak107
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jul 27, 2005
- Messages
- 6,205
absolutely in this day and age. 20 years ago nope, maybe even a decade ago nope but today as basic as bonds ,reits and stocks
absolutely in this day and age. 20 years ago nope, maybe even a decade ago nope but today as basic as bonds ,reits and stocks
we can banter this back and forth forever... all i can say is if anyone feels we are not destined for higher and higher prices over time or you feel you can do better elsewhere do it..... i tend to like the price protection insurance having a commodities fund adds to my mix.....
Right now gold and oil are pretty high due to speculative pressures
we can banter this back and forth forever... all i can say is if anyone feels we are not destined for higher and higher prices over time or you feel you can do better elsewhere do it..... i tend to like the price protection insurance having a commodities fund adds to my mix.....
Why are commodities good or not good to have as a part of someones long term asset allocation plan?
Some background: My problem is, my parents are constantly asking me financial questions these days. I do not work in the financial industry, it is just a hobby I have recently picked up because I believe it is important to know in order to FIRE as quickly as possible.
My parents are fairly near to retirement, so they struggle constantly with balancing risk vs. reward. Beyond just attempting to stay within a certain stock/bond allocation, they seem to be pretty unsure on what sort of allocation to use beyond that, and more importantly, have problems sticking with it. They get very scared when the market does badly and very confident when the market is doing well.
So at the beggining of the year they bought a natural resources mutual fund (oil/natural gas), in order to have commodities. Now they are asking me if they should sell it after it when from a fairly positive return to a small negative return in a short period. I ask them if commodities are part of their long term portfolio (as opposed to being just their high risk play money) and why they want commodities, and they just stare at me blankly...
I could really use some insight. Thanks all.
... and currency depreciation...I might say that they're more appropriate as a highly volatile, high risk/reward, plausible tracker for unexpected inflation.