GreenHaven Continuous Commodity Index (GCC) is up 21.9%, and uses the same passive method for selecting commodities as GSG. GCC follows the Continuous Commodity Index Total Return, an equally-weighted basket of 17 commodities.
As a consumer, the commodities boom can make you feel pinched, but the bull market of raw materials is a tremendous investment opportunity.
For one, the current highs are representing a market top, but are not actually the peak, according to Jim Rogers. Even if a short-term correction were to occur, the bull market still has a long way to go.
Another reason to add commodities to your portfolio mix is that some experts suggest that they seem to offset inflation. For both of these reasons, a growing number of planners and advisors are putting 5-10% of a portfolio into commodities. It’s a new wave and some say it isn’t overly aggressive to propose a 10% allocation at this point. However, it all depends on your preference.