Via a UBS note on commodities, analysts net bullish. This in brief:
- we remain positive on commodities over the medium term
- we expect the asset class to deliver strong diversification benefits for traditional bond/equity portfolios
- price movements are expected to be less linear going forward (ie more volatile)
UBS recommend approaching the volatility by:
- dynamically adapt exposure to the asset class
- rotate across sectors
- enhance portfolio collateral
Which sounds like 'buy low and sell high', and 'don't lose money'?
