AboutDr. Joseph de Beauchamp Expertise Over the decades, I have taught the MBA schools in this subject. I have published on over 2000 public companies. I love to help provide information to the individual and company.
Question Good evening Dr. Question: why don't many/most investment advisors at bank trust departments/brokerage houses recommend clients to dedicate a portion of their long-term diversified portfolio to commodities/natural resources type investments..is it too small of a market in terms of good mutual funds that are available to make it worthwhile for an average investor to enter this area of the market? Are commodity mutual funds, if there even are any, considered too "speculative" for the average investor? I keep hearing about how commodities/natural resources funds have been the "place to be" that past few years, but none of the investment advisors I ask has much to say about this area--they just recommend various stock/bond mutual funds for my portfolio and I just don't know why they don't feel a modest allocation to a commodity fund wouldn't make sense. THanks in advance
Answer Commodity mutual funds or any involvement with commodities are too speculative. I would be surprised if you found any money managers investing in these instruments. I am not aware of any that have recommended this or invested this way.
