Chart of the Day - Thursday, April 29th, 2021

Today’s Chart of the Day was shared by Arun Chopra (@FusionptCapital). Commodities have been trading like Cryptocurrencies recently. Lumber, Copper, Corn, Soybeans, Iron Ore, you name it, some of the biggest inputs to our global economy are surging to multi-year highs. There has been a lot of chatter about a potential super-cycle in commodities, and by the looks of these charts, it appears we could be in the midst of one. Generally speaking, investors don't seem to have much exposure to Commodities as an asset class. And why would they? Commodities have been dead money for the past decade up until recently. They don't yield income like other asset classes, so they've been relatively unattractive with interest rates as low as they have been. Also, they require more tactical management than Stocks or Bonds and therefore have not been popular in this era of passive investing. In a comment to The Chart Report, Arun said, "Given how long commodities have been in the dumps, a longer-term cycle, often referred to as a supercycle, is not out of the question. For now, it's clear they've come a long way in a short period of time, something we haven't seen since the last big cycle in 2003-2006."