Inflation may not be tamed. How commodities can protect your portfolio

Published On Nov 19, 2024, 7:00 AM

The article discusses the potential for commodities to perform better in the near future, particularly if inflation rises under a Trump administration. While commodities have underperformed stocks, experts suggest that they can serve as a hedge against inflation and recommend a small allocation (around 5%) in investment portfolios. The article highlights the Bloomberg Commodity Index's struggles compared to the S&P 500, noting that many investors currently have minimal exposure to commodities. It also suggests that various commodity-focused ETFs and mutual funds could provide opportunities for investors, especially in light of recent price declines and potential economic shifts.

Read full article

Stock Forecasts

GLDView GLD chart on TradingView

Positive

The current economic climate and potential inflation may drive demand for gold and other commodities as safe-haven assets. Gold traditionally performs well during inflationary periods, and as the S&P 500 has seen significant gains lately, a shift to commodities for diversification may attract investor interest.

COPXView COPX chart on TradingView

Positive

Copper is increasingly important due to its use in green technologies, and its prices are at a relatively low level right now. Should China pursue economic stimulation, demand for copper could rise, leading to price increases and potential profitability for copper-related investments.

WEATView WEAT chart on TradingView

Positive

Corn is trading near its production cost, suggesting limited downside risk. There is potential for price increases if adverse weather affects future harvests. Given the current low prices and market imbalance for wheat, this could be an opportune time to consider wheat-focused ETFs.

SLVView SLV chart on TradingView

Positive

Silver is another commodity that could benefit from the push towards renewable energy, as it's an essential component in solar panels. Current prices are low, and with increased focus on sustainable technologies, silver could see a price rebound.

Related News

Stock market today: Dow, S&P 500, Nasdaq slide as Russia-Ukraine tensions rattle markets

Nov 19, 2024, 7:55 AM

Worries about a nuclear escalation to the Russia-Ukraine war rattled markets, stealing focus from Nvidia and Walmart earnings..

SPY
GLD

Market has 'room to run' but that doesn’t mean buy more stocks: Bridgewater co-CIO

Nov 12, 2024, 4:44 PM

A red-hot stock market still has "room to run," but that doesn't make it the best place to put your money right now, according to the co-chief investment officer of the world’s largest hedge fund.

SPY
TLT
GLD

Gold ETFs are finally joining the party

Nov 11, 2024, 6:00 AM

Gold prices have been on a tear all year, but the love hasn't transferred to exchange-traded funds that invest in the precious metal. But now, the tides are turning.

GLD
IAU