The Strategic and Tactical Value of Commodity Futures PoorSatisfactoryGoodVery GoodExcellent Be the first. (0 ratings) Log in to rate this article. Financial Analysts Journal March 2006 | Vol. 62 | No. 2 | 28 pages Source: CFA InstituteClaude B. Erb, CFA Campbell R. Harvey US$0.00 Member | US$0.00 Candidate | US$0.00 Nonmember Read Abstract Investors face numerous challenges when seeking to estimate the prospective performance of a longonly investment in commodity futures. For instance, historically, the average annualized excess return of the average individual commodity futures has been approximately zero and commodity futures returns have been largely uncorrelated with one another. The prospective annualized excess return of a rebalanced portfolio of commodity futures, however, can be "equity-like." Some security characteristics (such as the term structure of futures prices) and some portfolio strategies have historically been rewarded with above-average returns. It is important to avoid naive extrapolation of historical returns and to strike a balance between dependable sources of return and possible sources of return. View more information Topics Alternative Investments : Commodities | Derivatives | Portfolio Management : Asset Allocation Credits · About the CE Program 1 CE (including 0 SER) Record credits Credits recorded Members, log in to record your credits. Manage CE Credits People who viewed this page also viewed: Long-Term Global Market Correlations In order to examine the correlation structure of global equity markets, the authors measure two components of the benefits of international ... More Credit Suisse Global Wealth Report The "Credit Suisse Global Wealth Report" is a comprehensive study of world wealth that analyzes the world’s entire 200 trillion ... More Credit Suisse Global Wealth Databook This Databook displays the detailed dataset backing the "Credit Suisse Global Wealth Report," the comprehensive study of world ... More Loading ...