Watch These Commodity Stocks

Watch These Commodity Stocks

The recent sharp decline in commodities put the skids on the red-hot bull run we saw in the first half of this year. The U.S. Fed’s signal that the rate hike could come sooner than expected pushed up the U.S. dollar, and sent commodities tumbling due to the inverse relationship between the two. The commodities downdraft further intensified on the signs of the Chinese government tightening its monetary policy. Analysts say the pullback was overdue after increased industrial demand on the back of economic reopening sent commodities soaring in the first half of the year. The S&P GSCI, index that serves as a benchmark for commodities investments, has gained 27% for the year to date, far surpassing the nearly 11% gains for the S&P 500 index and just over than 17% for the S&P/TSX Composite Index, as of June 18.

Investors looking to add commodity exposure may want to keep […]

About the author: StockMan

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