LONDON (Reuters) – Raw material and stock prices are likely to move together in reaction to short-term shocks, but over the longer term commodities help to hedge investment portfolios, a conference heard on Wednesday.
Over the past few weeks commodity and stock prices have tumbled as investors panicked about a global economic growth slowdown, rising inflation and higher interest rates.
That has led to questions about the value of commodities as a portfolio hedge, used as a marketing tool by many vendors, because they traditionally have little or no relationship with other asset classes.
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