Vontobel Multi Asset Boutique
Commodities play an essential role in our everyday lives. Whether we eat a slice of toast for breakfast, take the bus to work, or drink a coffee with colleagues, we are users of commodities. The commodities value chain employs millions of people. Switzerland, a country without significant natural resources, acts as a global trading hub for physical commodities, which contributed 4.8 % of GDP1.
Contrary to some investors, we believe that demand for commodities will remain strong. Even if Chinese and industrialized economies slow down, emerging markets will continue investing to reduce their infrastructure deficit, while their growing population will continue to live in expanding cities. This will drive growth in commodities consumption.
This paper makes the case for incorporating commodities investments into a broader multi asset portfolio by answering the three questions that clients ask us every week:
We also address the misconception that investing in commodities has a speculative character.
1. Source: Swiss state secretariat for economic affairs, 2019