Morningstar on Commodities
Our house view puts valuation at the forefront.
This article originally appeared in the Winter 2019 issue of Morningstar magazine. To learn more about Morningstar magazine, please visit our corporate website.
Amid trade wars and a global growth slowdown, investors have fled to gold so far in 2019. Meanwhile, many commodities are struggling. But these asset classes perhaps shouldn’t be viewed as either a safe haven or a bet on macroeconomic trends. Low correlation with other parts of a diversified portfolio is one reason to invest in these areas. Valuation may be another—for long-term investors who can ride out risks. Brian Huckstep, a portfolio manager and multi-asset specialist with Morningstar Investment Management, and Kristoffer Inton and Jeffrey Stafford, both directors of equity research with Morningstar Research Services, joined me to share their insights on allocation strategies and investment opportunities. Our conversation took place on Aug. 29 and has been edited for length and clarity.