Are Natural Resource Stocks the Inflation Fighters Investors Want?

For many investors, the desire to own commodities stems from the asset class’s inflation-hedging or portfolio-diversifying characteristics. While the most common way to get commodity exposure is by investing in a portfolio of commodity futures, many investors believe that owning a portfolio of natural resource stocks is an easier solution. However, the choice has serious downsides and the positive attributes are somewhat lost when the allocation is expressed through public market equities.