Q: I am considering adding an ETF that provides coverage of assorted/balanced commodities. I would appreciate having some names that you would recommend; Canadian or USA. What is your opinion of adding a position as an uncorrelated asset to balance an all equity portfolio. I hold diversified energy holdings already (pipelines and producing companies in both oil and gas). I also hold mining stocks, RIO and AEM.

Q: I am reading about the benefits of adding commodities to a portfolio (PIMCO /Ibbotson 2006 study). Low correlation with other assets, positive correlation to inflation, optimal allocation from 9 to 29%.

Any overarching comments on the pros and cons of commodities in a portfolio?

Can you recommend how a regular DYI investor might try to add exposure to this area?… an ETF? Any specific securities you recommend taking a closer look at? I don’t want to be buying pork belly contracts!

Lastly, suggestion on ranges of how much commodities should represent in a portfolio? A conservative investor would be X% while an an aggressive investor would be Y%.

Q: I was interested in Stifel’s recent bullish long term forecast for commodities. Do you share in their enthusiasm, and can you suggest a favoured ETF and several preferred stocks in the sector. Thanks, Don