After several years of weak performance, many investors had soured on the prospects for investing in commodities. However, disciplined investors who have stuck with the asset class as an important part of a diversified multi-asset portfolio are seeing positive results.
During the past year, the Bloomberg Commodity Index has recorded a return of more than 49 percent, eclipsing the robust returns posted by the Dow Jones Industrial Average (35 percent) and the S&P 500 (43 percent).
Just about all raw materials — lumber, copper, soybeans — are experiencing short supply, high demand and significantly higher prices. The shortages, in most cases, are a product of the global pandemic, which short circuited production of many commodities. In addition, producers and suppliers trimmed their inventories to bare minimums to prevent losses during the pandemic. Now, with vaccinations and economic recovery well under way, consumers have gone on a buying spree, and commodity su
