If you want to see two financial analysts get into a fistfight, all you need to do is find one who likes commodities and one who doesn’t. There is hardly an asset class that is as divisive as commodities. Traditionalists say that commodities don’t have any cash flows, thus there is no way to value them properly and as a result, all you can do is speculate that you find someone who will pay more for them tomorrow than you did today. And then there are the more eclectic people who say that just because commodities don’t provide cash flows doesn’t mean they cannot be useful in a portfolio.
Another look at commodities
Another look at commodities
Another look at commodities
If you want to see two financial analysts get into a fistfight, all you need to do is find one who likes commodities and one who doesn’t. There is hardly an asset class that is as divisive as commodities. Traditionalists say that commodities don’t have any cash flows, thus there is no way to value them properly and as a result, all you can do is speculate that you find someone who will pay more for them tomorrow than you did today. And then there are the more eclectic people who say that just because commodities don’t provide cash flows doesn’t mean they cannot be useful in a portfolio.