Ray Vella / BW
Commodities
Format: Futures, limited partnerships, mutual funds
WHAT HAPPENED IN 2005 Rapid growth in the developing world, especially China and India, has sharply driven up the prices for copper, platinum, and other metals. The Goldman Sachs Commodities Spot Index was up nearly 42% for the year to date, as of Dec. 9.
OUTLOOK FOR 2006 Double-digit rises are expected to continue. “Investors should have hard assets in their portfolio,” says New York planner Kathleen Piaggesi. Natural-resources funds offer the broadest plays, whether they buy commodities contracts or stocks in producers, and allow for a quick exit if prices overshoot demand.