Commodity Trading Vs Stock Trading - What is Better?

Commodity investment has the name for being risky. several investors area unit merely terrified of investment in commodities. Now, statistically speaking there's no additional risk investment in commodities than there's investment in stocks. For no matter reason, investors have shunned commodities as investments for what they assume area unit the additional prudent investments like stocks.

Let's do some comparison as this can be quite hard because the performance of commodities has been a lot of superior thereto of stocks over the years. Dow-Jones Industrial Average Industrial Average (DJIA) tracks the performance of thirty blue chip stock listed on stock market. it's a value weighted average. On the opposite hand Dow Jones-AIG goods Index tracks the performance of a basket of commodities.

Stock Trading

In 2002 alone, DJIA had a negative come of -7% as compared to the Dow Jones-AIG goods Index come of twenty sixth. Between 2002 and 2005, DJIA had a median of seven come. However, Dow Jones-AIG goods Index had a come of twenty first. this can be one thing psychological.