Yes, I know, I have talked about this before…. but I can’t help remarking on the divergence in price of shares (stocks) and commodities. Here is a 10 year graph of the US stock market, using the ETF SPY as a proxy, (yellow line) compared to the ETF AIGC (black line) which is a generalised commodities ETF. Shares have risen in price, commodities have fallen in price. Will there be a reversion to the mean, or even a reversal? Well, of course, nobody knows!
Most investors never consider investing directly in commodities, but I think it makes sense to look at all the different asset classes and decide whether or not to be invested in them. At the moment, my system suggests that I should remain invested in equities and not be invested in generalised commodities, but this may change. When will this happen?
Here is a video of my impression of the different asset classes this week!
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