How To Lose Money Investing In Commodities

With real estate markets in the gutter, treasury yields at all-time lows, and equity markets plagued with instability, it’s no wonder that commodity investing has been surging in recent years. Many investors have hopped on board with the various benefits that these investments offer, including inflation protection, equity hedges, and diversification benefits to overall portfolios. Commodity are very powerful, yet often misunderstood tools. While the statistics vary, “as many as 90-95% of investors trading commodities lose money” says Matthew Bradbard of MB Wealth . That staggering figure has prompted significant backlash against commodities as of late, as investors have grown tired of these tumultuous investments [see also Dividend Special: Top Companies In Every Major Commodity Sector ].