Investors must become "highly selective" when it comes to how they allocate assets to commodities until the global economy recovers, according to a white paper from Bank of New York Mellon Corp.'s Boston Co. Asset Management.
Until the recovery, which is expected by 2010, investors should consider investing in commodities "that require particularly long lead times to add capacity or face challenging geological hurdles," according to the paper, which was released last week. This would include iron ore used in the production of steel and potash, a fertilizer nutrient.
Boston Co. provides investment management services for corporate, public, mutual funds, and Taft-Hartley retirement plans, endowments, and foundations.
Bank of New York Mellon has $1.1 trillion of assets under management.
