Stocks vs Commodities

Hello community,

Found this graph that I think is very interesting to put our VT (and stock) investments into perspective:

Some more interesting insights here: Weekly S&P500 ChartStorm - 24 April 2022 - by Callum Thomas

Is this time to allocate some % of the portfolio into commodities?

Historic performance doesn’t guarantee future returns yada yada… if you believe a big downturn is coming, just buy Gold :slight_smile:

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I am sceptical of this chart. Does it show total returns, including dividend yields reinvested etc.? Also, I believe this chart doesn’t take into account the most powerful benefit of passive buy&hold investing: compounding (there’s no such effect with commodities). Finally, commodity-rich countries and commodity-producing companies are included in a globally diversified equity portfolio, so you’ll automatically participate in any commodity-boom (to the right, market-weighted, extent).

Investing in commodities, imho, might be a good short-term tactical move if you have deep insider knowledge of the commodity market. If not, you’ll always be too late investing.

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