June 10, 2011, 12:01 a.m. EDT
Why commodities still belong in your portfolio
Recent weakness masks positive trends, long-term demand
By Claudia Assis, MarketWatch
SAN FRANCISCO (MarketWatch) — The recent nosedive for many commodities has done little to shake money managers’ belief that natural resources are on track for long-term gains as China and other developing countries grow richer.
Commodity futures prices hit the skids in May, in some cases losing more than at any point in the last two years and giving back much of 2011’s gains.
“Dramatic gains that we’ve seen, primarily liquidity driven, are unlikely to be repeated” in the next three to six months, said Mihir Worah, a portfolio manager and managing director with Pimco, the mutual fund giant. Worah leads several of the firm’s top performing commodity-based funds.
Yet commodities still play an important part in an investment portfolio, offering some diversification from traditional stocks and an avenue to the long-term growth of the world’s developing markets.
Greater numbers of people in China, India, Brazil and other emerging economies have more money to spend — a global force that requires more commodities and materials for both infrastructure and consumer needs.
Full story: http://www.marketwatch.com/story/why-commodities-still-belong-in-your-portfolio-2011-06-10?dist=afterbell
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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