Tom Warner
Last week’s strong rally in commodities widened the asset class’ performance lead over other global markets, based on a range of ETFs through Friday’s (May 17) close.
WisdomTree Enhanced Product Strategy Fund (GCC) is up 15.4% since the beginning of the year, outpacing the year-to-date rise of U.S. stocks by more than 4 percentage points (VTI), is the second best performer. Major asset classes It will increase by 11.0% in 2024.
Several bullish trends have contributed to the rise in major commodity prices recently. For example, copper, a key component of renewable energy; It hit a record high in early trading today. Money also new peak today, as concerns about government debt and inflation have fueled buying in this corner. Meanwhile, crude oil prices have stabilized this month, although they have fallen significantly since April.
Meanwhile, Bloomberg reported last week that report: “Grains of the World” Major U.S. forecasts say supplies will tighten next season, setting the stage for rising agricultural prices as the economy continues to grapple with stubborn inflation. ”
So far this year, the biggest losers have continued to be government bonds and U.S. real estate investment trusts. Deepest losses year-to-date: Sovereign debt in developed markets ex-U.S.BWX), which will decrease by 4.8% in 2024.
Expectations that the Fed will cut interest rates later this year have renewed hope that the worst is over for government bonds (bond prices and yields will move in opposite directions). Thanks to last week’s positive news on US inflation; federal funds futures Countries are now pricing in some confident probability that central banks will lower their target interest rates at the September 18th FOMC meeting.
Editor’s note: The summary bullet points in this article were selected by Seeking Alpha editors.
