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.
So why start now and incorporate commodities into your portfolio? There are two reasons that Brian O’Keefe for Forbes believes putting your money into resource markets can get you ahead.
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.