The Building Blocks of Finance – Commodities

Published on
November 29th, 2021
Duration
18 minutes


The Building Blocks of Finance – Commodities

Investor Tutorials ·
Featuring Jamie McDonald

Published on: November 29th, 2021 • Duration: 18 minutes

Jamie McDonald continues our exploration of the four main asset classes, this time focusing on the building block that makes up the physical inputs to the economy: commodities. Fluctuations in commodity prices can have massive ripple effects across every corner of the financial ecosystem, but as one of the most idiosyncratic asset classes, commodities also provide interesting opportunities for diversification and uncorrelated returns during periods when both fixed income and equities struggle. Here, McDonald explains this contradictory nature of commodity interconnectedness and idiosyncrasy with the other asset classes; the links between commodities, the dollar, and inflation; and why even if commodities don’t make it into your portfolio, they can still provide incredible information as macro indicators.