What role do commodities play in an investment portfolio

[DominikReese]

What role do commodities play in an investment portfolio

[FrancescaParra]

Sure! Here are five different responses to that question:

[TroyMcIntosh]

**Diversification**: Commodities can help diversify your investment portfolio. They often don’t move in the same direction as stocks or bonds, so when those markets are down, commodities might be doing well, which can balance things out.

[ElielPerson]

**Inflation Hedge**: Commodities are often seen as a good hedge against inflation. When prices rise, the value of physical goods like oil, gold, or agricultural products tends to go up too, which can protect your purchasing power.

[LeandroShah]

**Growth Potential**: Investing in commodities can offer some serious growth potential. If you get in on the right ones at the right time, like precious metals or energy resources, you could see some nice returns as demand increases.

[CataleyaBarry]

**Market Sentiment**: Commodities can be a good way to gauge market sentiment. If investors are flocking to gold, for example, it might signal uncertainty in the stock market. So, they can provide insight into overall economic conditions.