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Tag Archives: S&P GSCI

Mar 4, 2024

Food Inflation Bites into Income as Commodities March Higher

Inflation continues to impact consumers and policymakers in negative ways. Hedging through broad commodities has proven to buffer portfolio returns, with the S&P GSCI up 5.38% this year. Going into the year, expectations of Fed rate cuts and continued declines in the Consumer Price Index (CPI) pushed inflation concerns aside. Since then, markets have experienced…

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Jan 3, 2024

Twenty-First Century Fox: DJCI Gold Tops Stocks and Bonds This Century

The equity markets roared to the finish line, easily passing commodities and bonds with a 26.3% return for the S&P 500® in 2023. Much of that rally could be attributed to declining consumer price indices and favorable Federal Reserve guidance, with increased confidence in a soft landing. Declining inflation can best be observed at the…

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Nov 2, 2023

Previewing the 2024 S&P GSCI Rebalance: Big Oil’s Mojo Is Back

Long-time investors in products linked to the S&P GSCI remain keenly aware of the outsized role oil has in broad commodity performance. Reviewing the projected weights of the 2024 S&P GSCI rebalance oil is expected to remain the largest commodity in the index. WTI and Brent crude oil are projected to swap positions and collectively…

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Oct 2, 2023

Diversifying Commodities Rise 16% in Q3 2023 as Equities Drop

Commodities, as represented by the S&P GSCI, rose over 4% in September and 16% in Q3 2023. This highlighted the potential diversification qualities of this asset class, as equities and fixed income both fell during the month. Commodities’ low correlations to other asset classes can provide a cushion when other higher-allocated asset classes drop during…

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Sep 5, 2023

D-FENCE! Investigating Commodity Performance under a Defensive Fed

I love this time of year. August vacations are over, the kids are back in school and football season kicks off in the U.S. The Fed took its August “vacation” at the Jackson Hole Symposium, where Jerome Powell’s remarks singularly focused on price stability. Inflation has come down but “remains too high” and the Fed…

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Aug 1, 2023

Hot Temperatures and a Hot Start to the Second Half of 2023 for Commodities

The S&P GSCI, the broad commodities benchmark, started the second half of the year in a blistering heat wave and rose 11% on the back of petroleum commodities, which all increased by more than 14% in July. The remaining four sectors within the S&P GSCI also rose during the month, as fears of a recession…

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Jul 5, 2023

S&P GSCI Mid-Year Recap and Lithium Added to S&P GSCI Electric Vehicle Metals Index

Surging futures activity on CME Group’s lithium contract allowed for entry into the S&P GSCI Electric Vehicle (EV) Metals Index. This milestone reflects the changing nature of indices to maintain a representative share of the global commodities market. The largest and most recognizable benchmark for commodities, the S&P GSCI, reviews contract eligibility for existing and…

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Jun 1, 2023

Hedging Debt Ceiling Drama with the S&P GSCI SOFR and S&P GSCI Gold

The debt ceiling debate in Washington appears to be nearing an end. According to the U.S. Treasury, Congress has “always acted when called upon” and markets will look for them to do so for the 79th time this month. By index rule, all commodities in the S&P GSCI are traded in U.S. dollars, so the…

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May 1, 2023

The S&P GSCI Cooled in April as Inflation Cooled

The S&P GSCI fell 0.8% in April as the Fed’s preferred measure of inflation, Personal Consumption Expenditures (PCE), fell slightly on a year-over-year basis to 4.6%. Continued elevated readings of inflation, albeit cooling, led to market expectations that the Fed would hike rates again in May to bring inflation back to its 2% target. Commodities…

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Apr 11, 2023

Breakfast – The Most Important Meal of the Day

The first quarter of 2023 was a slow start to the year for commodities in general. The S&P GSCI Dynamic Roll Breakfast (OJ 5% Capped) also had a slow start, down 3.1%, after a solid 2022 performance of 14.12%. Maybe a higher weight to coffee would give the index the caffeine kick needed to boost…

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