Taking a contrarian view to a traditional reading of key indicators of commodity prices boosts the return of traditional portfolios of commodities
Gold leads ytd precious metals inflows above US$1.5bn, as investor sentiment remains fragile. Oil outflows accelerated last week, as investors booked profits. Clear concern for the sustainability of the recent trend for higher oil prices is the driver and some investors are concerned that there will be limited further near-term gains
Over the past 60 years, portfolio management has significantly gained in complexity and sophistication with active funds such as the Yale endowment fund not always outperforming a passive index tracking strategy. Nowadays, it is possible to construct an equivalent strategy to the Yale model that is more transparent, more liquid, passively managed and cheaper to implement.