“When you buy an oil company you buy a lot of other things that make it behave like other energy stocks or even like the whole stock market. Further, when you move beyond energy, markets like sugar, orange juice, carbon, cotton, coffee, lead, and tin – these markets don’t really care about interest rates, the Fed, or what the US President does. They are mostly driven by local or global supply and demand.”
“Gold did well during the recent period of disinflation in 2023 and 2024, when CPI moderated, and other growth type assets such as equities and crypto also did well. It can be a great diversifier, but it has not proven to be a reliable inflation hedge.”
Auspice CIO & President Tim Pickering outlined why he thinks we might be in the upswing of a commodity cycle and why a broader commodity basket can help now.
See more in the March 19th, 2025 Wealth Professional here.