gcgang
Thinks s/he gets paid by the post
- Joined
- Sep 16, 2012
- Messages
- 1,571
https://www.gmo.com/docs/default-so...se-for-natural-resource-equities.pdf?sfvrsn=3
Above is from Jeremy Grantham & Co this month.
He points out that with the decline in commodity prices, a broad index is getting less than half the exposure to resources than it was in the recent past. Yet NR equities have performed about the same as the broad market, with little or even negative long term correlation with overall equity returns.
Makes a decent case for reducing portfolio risk without sacrificing returns, as bonds do, by investing in NR equities, and that now is a reasonable time to do it.
Above is from Jeremy Grantham & Co this month.
He points out that with the decline in commodity prices, a broad index is getting less than half the exposure to resources than it was in the recent past. Yet NR equities have performed about the same as the broad market, with little or even negative long term correlation with overall equity returns.
Makes a decent case for reducing portfolio risk without sacrificing returns, as bonds do, by investing in NR equities, and that now is a reasonable time to do it.