The Case for Commodities
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.
In response 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.