Rob Brown with Investment News looks at commodities and how they are in a bull cycle. Commodities go through very long-term cycles with extreme outperformance or underperformance. Brown concludes the current bull cycle is in its early stages and that demand will rise for the next 20 years.
Two new exchange traded funds allow investors to diversify their portfolios with broad commodity exposure. Deutsche Bank Commodity Index (DBC) is tied to crude oil, heating oil, gold, aluminum, corn and wheat. iShares GSCI Commodity Indexed Trust (GSG) holds 24 types of commodities. These ETFs are relatively new, DBC began trading in February and GSG in July.
For full disclosure, DBC and GSG are held in some client accounts.