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Should commodities be a permanent part of your portfolio?

Commodities have had an impressive start to the year. In Q1 of 2022 the MSCI All Countries World Index Energy gained 21.46% in US dollar terms. The broad MSCI All Countries World Index was down 2.6% at the end of the first quarter. Supply shortages, covid recovery and Russia’s invasion of Ukraine have all contributed to skyrocketing prices. It is easy to see why you would want to hold natural resources in this economic environment – but should they be there permanently?