The Invesco Commodity Index Fund (DBC) is up 162% since COVID lows in April 2020. During the same period the MSCI World (ACWI) is only up 70%. Commodities have thus beaten stocks by 92% since April 2020 – consistent with my expectations at the time. The reason for this strong commodity outperformance is largely two-fold. […]
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The sound of Inflation
Covid-19 shutdowns are a huge deflationary shock for the world economy – but a temporary one The fiscal and monetary response is of unprecedented size, and will not be withdrawn quickly, even after the pandemic ends and normal consumption patterns resume We are in for an inflationary shock later this year or in early 2021 […]