Diego Thomazini/iStock via Getty Images
By Gargi Pal Chaudhuri
KEY TAKEAWAYS
- Commodity indexes have rallied amid heightened geopolitical uncertainty and structural supply shortages
- Commodities have historically shown resiliency in rising rate environments and can help investors hedge against rising inflation and diversify portfolios
- Commodity exchange traded funds (ETFs) offer convenient and affordable access to a broad range of commodities
Heightened geopolitical and inflationary pressures this year have put a spotlight on commodities, with investors using the asset class for a dual purpose: a potential hedge against inflation and adding diversification to a broader portfolio in a rising rate environment. As a result, we’ve seen an increase in prices and volatility across the commodity asset class as a whole.
COMMODITIES AND INFLATIONARY FORCES
Commodities, as represented by the S&P GSCI — a benchmark of 24 commodities in agriculture, energy, and metals — is one of…
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You can Read this Complete Story at:
https://seekingalpha.com/article/4499590-commodities-in-demand
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Dow Today, Dow Jones Today
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2022-04-04 11:09:00