Chart of the Day - Thursday, February 3rd, 2022

Today’s Chart of the Day was shared by Willie Delwiche (@WillieDelwiche). The chart compares the six-month performance of Stocks ($VTI), Bonds ($AGG), and Commodities ($DBC). Willie points out that Commodities continue to outperform Stocks and Bonds. Generally speaking, investors still lack exposure to this asset class, and it’s easy to understand why. For starters, Commodities had been dead money for nearly a decade between 2011 and 2020. They don’t yield income like Stocks or Bonds, so they were relatively unattractive in the low-interest-rate environment that we're were in. Also, they require more tactical management than Stocks or Bonds, making them unpopular in this era of passive investing. We could easily see Commodities continue to shine, as money managers chase performance in this abandoned asset class.