In 2020 when the FED start to print trillon to save the market i worry about inflation and start to open some new position in commodities. Some of them were for quick gain like Oil:
I also open some long term to protect against inflation. I choose to have around 15% of my portfolio expose to commodity mainly with several various commodities ETFs like DBC and GSG.
One point people may be curious about is why only limit to 15% of portfolio? It is because commodities react very negatively to market crash. You can see it in 2008/9:
Reason is simple….if economy slow down there is less need of commodities. Since i do not know when market will crash I want to avoid being too much expose and regularly rebalance to keep a limited exposure.
