Commodities encompass many materials, such as energy, livestock and agricultural products, as well as precious and industrial metals. Unlike equities or bonds, commodities tend to have a physical use.
Why do we behave irrationally? Why do we sit in a cinema watching a bad film just because we bought the ticket? Are we not simply suffering the consequences twice?
Buying a new car is an exciting experience. We choose the make, model, engine size and whether it is to be diesel or petrol. We spend endless time looking at the basic specification and deciding on extras. Finally, when a decision has been made an order is placed and the cars arrival is eagerly awaited.
It should be no different with investment planning but unfortunately, for most, it is rather boring.
Given the recent market volatility, potential investors would be forgiven for thinking the best place for their money would be under the bed. Whilst this has the obvious plus point that, barring a burglary, you will get your money back when you need it; it is likely to leave you poorer over the long-term.
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