Isn’t it difficult to compare the GSCI index since years of Contango means negative carrying costs and a lower base?
Argument definitely still holds for equities though.
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Unknown member
Mar 23, 2022
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While there is some validity to what you are saying, I also think that no matter how we measure the aggregate pricing of a basket of commodities vs that of equities, we're going to come out with a similar dynamic: equities are evidently historically expensive, commodities from a supply and demand perspective seem to be historically cheap. The ratio between the two is at historic extremes. All of which point me to the idea that there remains potential opportunities for capital appreciation within the commodities space.
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Mayem, how does one get some exposure to commodities without buying them individually? ETF like DBC? Or is there a better way?
Isn’t it difficult to compare the GSCI index since years of Contango means negative carrying costs and a lower base?
Argument definitely still holds for equities though.