Tag Archives: S&P GSCI

Happy Valentine’s Day: Cocoa Hits Lowest Since 2008

If you buy a little extra chocolate this year for your Valentine, your wallet will be as happy as your sweetheart.  The S&P GSCI Cocoa is at its lowest level (closing Feb. 10, 2017) since Nov. 13, 2008.  It is down 31.3% since last year and is the single commodity with the biggest loss in Read more […]

Will The U.S. Oil Bath Wipe Industrial Gains Clean?

U.S. home prices hit a new record high as measured by the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index setting an all-time high in three consecutive months (with data ending in Nov.) It’s not the only indicator showing signs of growth and inflation as U.S. consumer spending accelerated in December as households bought motor vehicles Read more […]

When Will This Oil Contango End?

Today “oil jumps to a nearly 3-week high as output cuts take hold” as March West Texas Intermediate crude CLH7, +1.82%  rose $1.03, or 2%, to settle at $53.78 a barrel on the New York Mercantile Exchange—the highest settlement since Jan. 6. The S&P GSCI Crude Oil (Spot Return) is now positive in 2017 through Jan. 26, up Read more […]

S&P GSCI Rebalance Triggers Brent Outflows 8X Bigger Than For WTI

The S&P GSCI annual rebalancing is beginning today to adjust the commodity weights to their 2017 target weights over the next five days.  Energy remains the biggest sector in the index in 2017, targeting 56.2%, despite a significant decrease from its 2016 target weight of 63.1% and ending weight on Jan, 6. 2017 of 62.2%. Read more […]

Year in Review: 2016 Asset Class Performance

The high-yield corporate bond segment, as measured by the S&P U.S. High Yield Corporate Bond Index, was the top-performing asset class for 2016, posting a total return of 17.2%.  Despite a rather tumultuous first quarter, 2016 finished with a clear “risk-on” sentiment as evidenced by the asset classes that topped the list. On Feb. 11, Read more […]

Positive Commodity Years Typically Don’t Show Up Alone

Commodities ended 2016 by posting the first positive returns in 4 years. The S&P GSCI Total Return gained 11.4% and the DJCI (Dow Jones Commodity Index) gained 13.3%.  Energy was the best performing sector gaining 18.1% in the S&P GSCI, and livestock performed worst, losing 7.3%. Agriculture, industrial metals and precious metals returned -4.2%, 17.6%, Read more […]

Base Metals Beat Precious Metals By Most In 26 Years

November was sandwiched between two eventful surprises, starting with the election and ending with OPEC’s agreement to cut output, that resulted in a month filled with big moves, mostly positive.  The Dow Jones Commodity Index (DJCI) Total Return for the month was 2.3%, bringing its year-to-date (YTD) total return to 11.8%.  The S&P GSCI Total Return Read more […]

Why Cutting OPEC Supply From Highest to Higher Still Hurts

After OPEC agreed to an oil output cut in Algiers on Sep. 29, they increased supply by 230 kb/d to a record 33.83 mb/d in October according to the International Energy Agency (IEA).  Supply from Iraq reached the highest level ever and Iran pushed flows to a pre-sanctions rate of 3.72 mb/d. Now OPEC supply has Read more […]

How Commodities Might Do Under Clinton, Trump

In October, the S&P GSCI Total Return (TR) lost 1.5% but the Dow Jones Commodity Index (DJCI) TR gained 0.1%.  The performance disparity was mainly due to the weighting difference in energy since crude oil in the indices slid near 10% from its mid-month high, on doubts over OPEC’s ability to agree on production cuts and the Read more […]

Crude Reality of Enhanced and Excess Returns

(“Excess Return” does not mean any additional return on the ETF’ s performance) is a footnote in an ETF provider’s investment objective about an ETF that tracks the S&P GSCI Crude Oil Excess Return.  That disclaimer is true but never explains what excess return means in terms of additional performance.  After all, excess means more, and Read more […]