Image by Jesse Gardner

The Case for Commodities

Why Commodities?

201202-MM01.webp

In a financial landscape currently littered with potential bubbles, Contrarian believes commodities could present a historic value opportunity.

On an inflation adjusted basis, commodities have arguably never been cheaper.

The GSCI Commodity Index has certain limitations and Contrarian cannot trade the GSCI Commodity Index. The S&P500 Index has certain limitations and Contrarian cannot trade the S&P500 Index. Past results are not indicative of future returns.

Why Now?

EogY7lCWEAM5JNP.jpg

In resp​onse to the financial panic during the outbreak of COVID-19, the Federal Reserve has added an unprecedented amount of liquidity into the financial system.  Nearly 70% of all the United States Dollars ever created were created in 2020. 

We believe the actions taken by global central banks as a result of COVID-19 will result in unexpected inflation in the coming years.  

Exposure to commodities could help buoy a portfolio against unwanted inflation.

How much inflation beta do you want? Likely more than what you have.

EYJHBG~1.PNG