Portfolio Management
Learn to Allocate for the Best Returns

 

For this comparison I have used the S&P 500 (SPY) to represent the overall market,  a chart of gold, a grain commodity, corn, and a currency, the Japanese Yen.  

The stock market was already moving up years before the commodities shown here started moving, 2004 to 2008, the SPY was up 50%.

Gold and corn did not start moving out of range until late 2007. The stock market fell back to the 2004 lows and gold and corn fell back to the 2007 lows. The Japanese Yen moves similarly to the U.S. Dollar and inverse the to the stock market.

It is a common saying that commodities protect portfolios from market risk. You will see the only protection for a portfolio is good money management.

What we learn is that it is the wise management of assets that builds great wealth.  The TraderDoc common sense way to wealth. Click here for a chart of the U.S. Dollar and the Swiss Franc.

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