The Thirst for Commodities

Investors seeking out assets to boost returns

May 19, 2008

Institutional investors are traditionally a conservative bunch by nature, and that has meant that for them that commodities have not been a natural fit in their portfolio. But a relatively stationary equities market, a continuing credit crisis, and a weakening dollar, is now changing how those institutions think about everything from oil to corn. 'You are definitely seeing more institutional interest in commodities,' said Jeffrey Haber, controller of The Commonwealth Fund, a private foundation that focuses on health care issues. Haber said two things are driving the trend towards commodities: a desire for better returns than can be had from equities, and concerns about inflation.

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