Originally Posted by
Humbert
Isn't pretty fair to say that when equities turn down, commodity prices go up because investors are looking for a safe haven?
not really, there might be some short term correlations, but they can reverse very quickly, that is equities will go up with commodities price before reversing again or going flat (no correlation)
the level of interest rates change and inflation is a better predictor of equities performance,
Commodities have long cycle, eventually they crash and they do nothing for long period of time. You certainly don't want to be caught in that cycle when they do. However, some argue that they are necessary as a diversification strategy, even though they are not regarded as an asset class.
Don't put all your money into them though, being long on Gold with 100% of your saving is suicidal.