"A year ago, putting the 'alternatives' portion of people's portfolios into commodities was in vogue. But that's definitely not the flavor anymore," Levitt says.
"Alternatives" are the 5 percent to 10 percent of portfolio holdings carved out of the classic 60 percent equity, 40 percent fixed-income mix that people use for retirement savings, adjusting more toward fixed income the closer they are to retirement.
That mix is supposed to be revisited periodically to reflect new market and economic factors. For Levitt, the surprising slowdown in China's demand for manufacturing materials and a rising dollar are also key factors shifting views on commodities weightings. The slowdown in demand means supply may be high enough to keep a lid on prices, especially in the expanding energy sector.