Chart of the Day - Friday, October 8th, 2021

Today’s Chart of the Day was shared by Willie Delwiche (@WillieDelwiche). The chart shows Commodities ($DBC), relative to Stocks and Bonds over the past four years. Willie points out that Commodities are outperforming both Stocks and Bonds so far this year. Generally speaking, investors lack exposure to Commodities as an asset class, and it's understandable. Prior to this year, Commodities had been dead money for a decade. They don’t yield income like other asset classes, so they’ve been relatively unattractive in the low-interest-rate environment that we've been in. Also, they require more tactical management than Stocks or Bonds, making them unpopular in this era of passive investing. In a note written earlier today, Willie said, "We like to say that dollars flow to where they are treated best. If that is the case, Commodities could soon see a surge of inflows. For many investors, Commodity exposure isn’t even included as part of the asset allocation discussion. At least, not yet."