25 Things Every Financial Advisor Should Know About Commodities

Commodity Futures Trading Commission (Photo credit: Wikipedia)

Commodities are potentially very powerful investments, but they also come with their fair share of risks. In recent years, investors and advisors have begun to adopt commodities into portfolios, as many have seen the benefits of adding these low-correlated assets to a group of holdings. the launch of a robust lineup of exchange-traded products that utilize both physical commodities and commodity futures contracts has brought commodities to the masses; they’re no longer reserved for the largest and most sophisticated investors.

But as these assets have become more widely available, so too has the confusion on how to properly use them for clients without getting burned. While Commodity education must be an ongoing process, there are a number of basics that can enhance overall understanding, identify opportunities and limitations, and generally promote a better experience with these hard assets [see also The Ten Commandments of Commodity Investing]... Continue to read.

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