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Fitch Commodity Futures Group

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The FCF Group Advise Investors to Use Commodities as Inflation Hedge


The FCF Group are keen to advise both cautious and astute investors that commodities are part of a “real asset” class that can help protect against the impairment of portfolio assets from rising inflation.

New York, NY, August 11, 2012 --(PR.com)-- In recent years The FCF Group have noticed an increasing number of investors taking an interest in this exciting asset class, particularly the investor with heavy exposure to assets that are sensitive to loss of value because of inflation. Charles Haye, senior analyst at The FCF Group explained that “Commodities’ high correlation with inflation provides purchasing power protection against rising prices. The protection comes from the fact that commodities reflect prices in most commercial areas such as energy, metals and agriculture. Therefore, commodities are directly linked to the components of inflation and will tend to increase in price during inflationary periods. In comparison, financial assets such as stocks and bonds tend to face downturns when inflation rises. Stocks will suffer during rising inflation as increasing raw material costs reduce corporate profit margins. Rising inflation impacts bonds because it diminishes the purchasing power of a bond’s future interest payments and principal.”

“Commodities are also extremely effective at hedging unexpected inflation,” Haye continued “as prices perform better when un-realized inflation has not been priced into market valuations due to the investor entering into futures contracts. Our research shows that commodities do provide un-questionable returns and protection to portfolios during inflation.”

About The FCF Group:
The FCF Group is a client friendly commodity futures firm that puts the needs of the client ahead of its own. We are dedicated to providing the best service available in the futures industry today and to provide our clients with the tools that can assist them in becoming more successful in their commodity trading. We want to help you learn and we want to help you trade.
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The FCF Group
Sarah Myers
+44 (0) 207 0606604
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