Image by Jesse Gardner

The Case for Commodities

Why Commodities?

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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.

Additionally, the 10 year rolling return of commodities hasn't been this poor since the Great Depression.  Commodities have been the worst performing asset since the Financial Crisis of 2008.

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Why Now?

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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.

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The Case for Real Assets