Commodities in focus

Commodities have surged this year and diversification benefits appear to be back. Will the good news last?
Assets fall:  Commodity assets under management fell sharply in 2013, largely due to precious metals. Gold and silver values fell 28% and 36%, respectively, spurring outflows.
Comeback:  The diversification benefits commodities provided to equity portfolios prior to 2008 appear to have returned in 2013 as correlations have fallen.
Signs of strength?  After suffering in recent years, commodities have been strong so far in 2014.
Dim forecast:  The World Bank predicts commodity price declines in the next two years. Among major groups, only base metals are forecast to rise year over year – but not until 2015.
*2014 data as of Feb. 28. Sources: Barclays; Bloomberg LP; World Bank Commodity Markets Outlook
Compiled and designed by Timothy Pollard and Gregg A. Runburg