TD Asset Management’s Post

Transcript

These are volatile markets, investors rightly concerned about what's happening out there. What role can commodities play in all this? TD Asset Management, Hussein Aladdin, what role can come all these plays? So historically, you want to have commodities in your portfolio because it's a diversifier, negatively correlated with the fixed income and the equities that you hold and positively correlated with inflation. That's the historical landscape today when we look at equity valuations, what the fixed income market is doing, commodities are not immune from weaker growth, but we have tight inventories. We have not invested in the supply side over the course of the last 1012. Errors. So if I get positive growth, if the second derivative on growth gets better, there's tremendous amount of upside in our view. Now, commodities over the past several sessions have not been immune to this volatility. If someone stole a bit concerned, what would you say? So I would argue that most investors today have no or very little allocation to commodities. The folks who have taken that 10 percent, 7% allocation have outperformed year to date. Commodities are down maybe 1-2 percent year to date. Equities are up 17. Fixed income is off 3 or 4. It's not about owning commodities because they're going to the moon. It's a hedge when other stuff doesn't work. Always great insights with this scene, Aladina. There are a lot more. We just finished wrapping a full show of conversations. Check out the link. It's all brought to you by TD Direct Investing.