Wealth Management

12 Days of Christmas: Four Calling Birds

On the fourth day of Christmas my true love sent to me, four calling birds. We mark Day 4 of the 12 Days of Christmas, with the calling (or colly) bird, which is thought to be the blackbird, and how commodities fit into the investment themes of our portfolios.

12 Days of Christmas: Four Calling Birds

The fourth day of Christmas introduces us to the calling birds. Originally the phrase was four colly (or collie) birds, with colly meaning coal and hence the calling bird (or colly) is thought to be a blackbird.

Coal is of course a natural resource or 'commodity' and some economic commentators believe that the global economy has now embarked on a new 'commodities super cycle'. This being the 2000s commodities boom, which was the rise and fall of many physical commodity prices (such as those of food, oil, metals, chemicals, fuels etc.) during the early stages of the 21st century (2000–2014).

Rosecut believes the best way to participate in this new super cycle is with the balance of our portfolios being invested in what we refer to as 'agile assets'. There are interesting shorter term plays, such as individual sectors of the stock market, property equities and commodities so there is the potential for us to use direct commodity at a future point.

The value of an investment and the income from it can go down as well as up and investors may not get back the amount invested. This may be partly the result of exchange rate fluctuations in investments which have an exposure to foreign currencies.

If you would like to read the previous article for the second day of the '12 Days of Christmas: Three French Hens' please click here.