Jeremy Grantham recently suggested investors should figure on leaving any money invested in commodities alone for ten years. He suspects prices will drop in the interim.  But he thinks people would do well to stay with commodities if they can afford a temporary loss.

I used to be impatient with advice to put money into something that was expected to go down in price. If it wasn’t a good investment right now, why bother buying it, I thought.  Since then I have learned to value diversification, as the Bible says:

Cast thy bread upon the waters: for thou shalt find it after many days.

Give a portion to seven, and also to eight; for thou knowest not what evil shall be upon the earth. — Ecclesiastes 11:1-2 (ASV)

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