Ken French: Why Investors Shouldn't Own Commodities

I don't hold nor do I recommend ownership of any commodities in my clients' portfolios. I didn't always feel this way, but I do now.

Just as it would be inefficient and counter-productive to own two large-cap equity funds that hold the same assets, so is the case with commodity investments.  If you already own a highly diversified portfolio of stocks, you already have sufficient exposure to commodities.

In another recent Yahoo Tech Ticker video, Henry Blodget discusses this very issue with Dr. Kenneth French: