Asset Classes or The Difference Between Paper Assets and Commodities

Business persons and investors use to distinguish between four major asset classes. These asset classes are Business, Real Estate, Paper Assets, and Commodities. The reason for separating these four asset classes is that these four types of assets perform differently throughout different periods of the economic cycle. It is crucial to understand the different asset classes’ different characteristics or “personalities” in order to make informed investment decisions. Today’s mass media and business or investment publications, however, do a great job of blurring the view of these, in fact, simple characteristics and mislead investors by an enormous load of stupid news....