| Kippreport.com

Business of… investment tips

November 8, 2010 11:43 by Katherine Azmeh

Skip the commodities. In times of inflation, investors like commodities, analysts say — grain bushels, cattle futures, silver futures. And many who advocate a diverse profile say that should include some commodities. But Fran Kinniry, a principal with the Vanguard Group, says “commodities go through long ups and downs that could last decades. You have to be willing to hold them for 30 or even 40 years.” That’s dead weight in your profile, contends Money. The upshot: commodities can be expensive and complicated to trade, and there’s no evidence that they are a must for a diverse portfolio.

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Tags: chasing performance, commodities, equities, fundamental indexes, index fund investing, index funds, leverage, lump sum investing, momentum investing, money magazine, savings, share prices, stocks, unconventional investment advice