Commodity Investment Basics
Relative Performance of Equities to Commodities The above chart shows cyclical moves in commodities relative to investing in the S&P 500 , which can lead to potential investment opportunities in commodities. The periods 1970-1974, 1987-1990 and 1998-2008 show outperformance of commodities relative to the S&P 500 on the order of 800% occur with cyclical regularity. Today’s geopolitical and economic conditions are deteriorating exacerbated by the US-China trade war and Hong Kong protests which are accelerating the reallocation to commodity. Participating in this asset class transition could lead to dramatic investment performance outcomes that could impact investors and their lifestyles like those previous periods 1970-1974, 1987-1990 and 1998-2008 which encompassed four historic equity bear markets and commodity rallies. Figure 2. Soybean growing/export seasons (Brazil vs US) Price Dynamics of Commodities Each commodity has different price dynamics and co...
