Nowadays, economy is keeping developing. This situation results in many countries which include developing country and development country needs commodities. And many countries are emerging markets. The developing countries need more investment to help them. As an important financial behavior, the diversifying a portfolio is extensively used in the world. The diversifying a portfolio includes many things. And commodities and emerging markets can be invested, commodities and emerging market is easy to obtain profit and stimulate economic development. In my perspective, the important part of diversifying a portfolio is that investing in commodities and emerging market. About this essay structure, in the first, there are some definitions of diversifying a portfolio, commodities and emerging markets. And the second, there are some reasons about commodities and emerging markets can be investment. And some links between commodities or emerging markets and diversifying a portfolio are showed. Then, there are some evidences to help supporting that commodities and emerging market is easy to obtain profit and stimulate economic development and commodities and emerging market is invested, which is important part of diversifying a portfolio. In the last, there is a summarize the emphasis in last paragraph.
First of all, there is an explanation about diversifying a portfolio. It means about the investor make the investment in difference field or industry, or the investor makes the investment in difference products in one industry. The investor makes a best combination between the return and risk. The goal about diversifying a portfolio is increasing the chance about getting profit and declining the risk. Then, there is definition about commodities. Commodities mean that some merchandise can be tradable and used for industrial base of raw materials, like: crude