20.11.2024
Preparing for inflation by investing in commodities
Over the past two years, commodities have lagged behind the upward trajectory of the stock markets. Nevertheless, some investment experts urge not to underestimate their role. Stock and commodity indices compared Stocks and commodities seem to be travelling on two very different tracks: as Andrew Bary points out in ‘Barron's’, the S&P 500 Index has risen 25% this year, after having gained 26% in 2023; the Bloomberg Commodity Index, on the other hand, has fallen 3% this year and even 13% during 2023. It is not just a question of performance but also of investment volumes: Bary also points out that, overall, it can be estimated that around $250 billion is invested in financial products dedicated to commodities, compared to the $50 trillion invested in stocks included in the S&P 500. Commodities as an asset against inflation There are those who believe, however, that commodities should not be undervalued, all the more so today: the fiscal policies of the admini ...