Are commodities a good way to diversify my investment portfolio?

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1 Answer 28
Davit Sarah

Answered 1 week ago

Yes, commodities like gold, oil, and agricultural products are excellent for diversification. They typically have low correlation with stocks and bonds, so including them can reduce overall portfolio risk. Commodities often perform well during inflationary periods or economic uncertainty, providing a natural hedge. This balance can help smooth your portfolio’s performance through different market cycles.

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