“In periods of financial and economic distress, commodity prices tend to rise, potentially providing valuable diversification benefits in such times.”
“commodity prices tend to decline during periods of weakness in the economy.”
Both sentences come from volume 5 page 51. Are they contradictory?
They seem to be.
I’d suggest e-mailing CFA Institute (info@cfainstitute.org) and asking them.
Please let us know their response.
Does the book make a difference of what kind of commodities it is talking about in each case?
On the first sentence, gold is a good example.
On the second one, wheat is a good example.
So both sentences seem to be true, but depends on the asset.
I believe that it does not.