Investors who had an allocation to commodities in the early part of this decade will not be in a hurry to return. Commodity investing, which involves buying exposure to raw materials, be it minerals, metals or food, is generally used to diversify equity and bond risk. Individual commodity prices run in different cycles to those of companies and debt markets and can also be a hedge against inflation. However, a strong correlation in 2008 to equities and a severe bear market for industrial commodities, particularly energy, between 2011 and 2016 made investors think again. Since 2016, the market has rumbled on in a somewhat smoother fashion and its benefits are being recalculated.
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