Page 9 - What is the Squad List?

WHY COMMODITIES?
Well take a look at this. It’s the Goldman Sachs Commodity Index.
Several points to note. Firstly, investments tend to move in cycles (they go up and down). As things stand, if you look at the chart above and history were to repeat itself, it looks like commodities could have some good days ahead.
Secondly, although it’s nice to get the timing right, it looks like it’s time in the market rather than timing the market that could bring you success. Sure, commodities could deliver a “quick win”, but you may have to be in the market for a while, so I would not view this as a short-term investment. It’s impossible to say how long the investment time horizon is, but I’d view it as at least 3 years, ideally longer.
Thirdly, the Goldman Sachs Index is currently an index of about 24 commodities. If we have a recession, I’d want to be selective about which commodities I choose. Commodities are used to make stuff, and in a recession, people tend to buy less stuff. Therefore, although I want some diversification, I’d like my investments to stack up even if there’s a market downturn. This is a major reason why I want gold to be the “backbone” of my investment portfolio.
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