This presentation will discuss why now is a good time to consider making a portfolio allocation into the commodity asset class and how to do this in a low cost and tax efficient manner without sacrificing too much income or capital growth potential from the rest of an investor’s portfolio.
For decades, the “60/40 portfolio” felt like the smart, set-and-forget way to invest: 60% in shares for growth and 40% in bonds for stability. When shares wobbled, bonds usually rose. Simple. Reliable. It worked through bull markets, mild recessions and falling interest rates.
For decades, investors relied on the classic 60/40 portfolio: 60% equities and 40% bonds. That worked well during an era characterised by declining interest rates and relatively stable inflation.
For the longest time global investment markets been defined by the implicit assumption that globalisation, relative geopolitical stability and expanding trade would continue indefinitely. However, that assumption is being tested.