Commodities as an Investment Vehicle

 

Commodities pic
Commodities
Image: investopedia.com

Successful investment and financial planner Darin Pastor founded Capstone Affluent Strategies in 2012, and serves as the firm’s chief executive officer. Guided by Darin Pastor’s decades of senior level experience in financial advisory services and his work with structured financial securities, Capstone Affluent Strategies promotes wealth management approaches that emphasize portfolio diversification through a range of investment vehicles, including commodities.

Commodities such as oil, gold, and raw building materials are an appealing way to diversify a portfolio and protect against market volatility. The general rule of thumb is that commodities move against the equities markets and are an ideal hedge during market downturns.

Investors can buy commodities outright, or purchase exchange-traded products that follow a commodity index. The latter strategy is considered higher-risk and is usually reserved for the most knowledgeable investors. The most common way to gain exposure to commodities is through mutual funds invested in sectors closely related to the performance of specific commodities, such as energy and agriculture.

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