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The Compound and Friends

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The Importance of Commodities as Insurance for Stock Investors

The biggest hiccup for stock investors could be a real water shortage, rising food prices, and increasing prices of heating well and natural gas./nCommodities can act as insurance for non-commodity traders, serving as a hedge against potential losses in other areas of their portfolio./nCommodities and the stock market are seen as negatively correlated, meaning that an increase in commodity prices could result in losses in the stock market.

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