Investing in commodities: Popular beliefs and misconceptions

Over the last decade institutional and individual investors have increased their allocated share of wealth to commodities immensely. In this short article, we discuss some common beliefs and point out the misconceptions on the motivation for investing in commodities, whether commodities should be included in investors portfolios and how investors should measure the performance of commodity funds. The expressed ideas can enhance investors interest in this fascinating asset class. © 2012 Macmillan Publishers Ltd.