The Bloomberg Commodity Index rose 6.4% in February 2021. Commodities have finally recovered their 2020 losses, posting small gains from year-end 2019.
Monthly = Bloomberg Commodity Index Excess Returns (BCOM)
Cumulative = Cumulative BCOM return since start of 2020
Source: Bloomberg.com
Year-to-date, energy, up almost 20%, overwhelmed the Bloomberg Commodity Index. Industrial metals, softs and grains all were reaching for 10%. Precious metals lagged, down almost 8% year-to-date. Bitcoin, up 27%, the new "gold", is added for good measure.
Stars may be aligning for hard assets. The combination of Covid waning, more huge stimulus and ample Fed accommodation can spike demand-the punchbowl may not be leaving for quite some time. With interest rates rising the long-term commodity bear cycle may give way to signs of inflation - the definition of bullish commodity markets!
Disclaimer: Posts are for education only and not investment advice, may be subject to change without notice, and, while prepared with care, may be subject to omissions and errors. Please follow this blog by email.
© 2021 Vista Market Research.
No comments:
Post a Comment
Please feel free to comment!