Unlocking Equity-Like Returns: The Game-Changing Value of Commodity Futures
Investors looking into commodity futures face challenges in predicting their performance. Individual commodity futures historically have had little excess return and low correlation with each other. However, a balanced portfolio of commodity futures can offer returns similar to stocks. Certain factors like futures prices and portfolio strategies have led to higher returns in the past. It's important to not rely solely on historical data and to find a balance between reliable and potential sources of return.