Page 8 - What is the Squad List?

Going back to my Commodity Portfolio Building System.
You’ve got to start somewhere, and a useful question to ask yourself is, what am I going to invest in? Many people buy something because they’re told it’s a “good idea” and walk away—they’re done.
They’re not thinking about the “what”; they’ve just been told it’s “a good deal”, and they’re NOT thinking about their portfolio; they’re just thinking about that particular investment. They don’t have a portfolio. Just an investment.
There’s a BIG difference.
You need to consider EVERYTHING in the context of how it fits into what you already have (or plan to have).
Here are a few things to think about:
1.How does it fit into the rest of my portfolio? For example, if all your other investments are high-risk, you may want to consider something lower- risk.
2.If the rest of your portfolio is illiquid, you may want to look at something that’s liquid.
3.How does the asset class correlate with the rest of the portfolio? If you want the benefits of diversification, you ideally want something that does not correlate that closely, so if the rest of your investments head south, it does not join them!
You want to have a portfolio that’s well-diversified. For example, I like to have exposure to several commodities, so if the prices of some fall, then others will hopefully rise.
Let’s deal with the WHAT!
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