Recent months have provided a powerful example of the wild price swings that have characterized commodities throughout history.  The S&P Goldman Sachs Commodities Index (GSCI) climbed 41% over the first six months of 2008 only to give up 51% over the subsequent four months (July 1 through October 31). Encouraged by the broad and steady climb in commodities prices early this century, an unprecedented number of investors began turning their attention to this alluring asset class. 

In light of the pullback since June, it is reasonable to ask what role, if any, commodities deserve in your investment strategy. In this paper, Maria Riddle, Director, Strategic Investments for Mellon Capital Management, outlines the case for commodities as a diversifier, with the potential for downside protection as part of a broad-based financial (stock and bond) portfolio.

For more information or a hard copy please contact, please contact David Zigas at 617 248-6202.

The preceding information is based upon the analysis of historical performance of various asset classes and assumptions with respect to future economic conditions. Past performance is not an indication of future results. This information is not intended to provide specific advice, recommendations or projected returns of any particular BNY Mellon Asset Management  product.