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Tag Archives: energy

Feb 1, 2023

Commodities Flat in January After Second-Best Yearly Performance in Two Decades

The 24 individual commodities comprising the S&P GSCI finished the first month of 2023 with divergent performance. This echoed the uncertain path forward regarding inflation expectations. Half outperformed, with industrial metals leading the way, while the other half declined, with natural gas tanking, as European countries filled their tanks to their brims. Gold had one…

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Jan 17, 2023

When the Winds Change

“Change is the investor’s only certainty.” Thomas Rowe Price, Jr. 2022 marked several major changes in market trends amid a substantial shift in global macroeconomic regimes. After historic levels of stimulus, multi-decade highs in inflation across several major economies led to monetary tightening. This shift weighed on asset classes in many regions, and traditional routes…

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Jan 16, 2023

Contextualizing Style Shifts

The S&P U.S. Style Indices are designed to provide broad and exhaustive exposure to the market’s value and growth segments. Our index methodology bifurcates a parent index’s market capitalization into roughly equal portions on the third Friday in December, using six measures shown in Exhibit 1.  Although the composition of style indices changes every year,…

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Jan 3, 2023

Commodities Outperform for the Second Year in a Row

The market standard commodities benchmark, the S&P GSCI, performed admirably in 2022, rising 26%, outpacing other commodities indices and asset classes, as well as defying higher interest rates and growing fears of a prolonged global economic slowdown, while high inflation provided a solid backdrop for one of the most inflation-sensitive asset classes. Commodities has been…

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Dec 1, 2022

Commodities Challenged by Slowing Global Growth in November

Commodities, represented by the broad-based S&P GSCI, fell 1.7% in November on the back of weakness in the petroleum and grains complexes. Global commodities markets were particularly hit this month by worries over rare demonstrations in China against COVID-19 curbs, with oil and grains falling to multi-month lows and safe-haven gold rising. After 11 months,…

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Nov 9, 2022

Watch Your Weighting Scheme

2022 has witnessed a recalibration across financial markets, as investors have digested the impact of higher interest rates amid elevated inflation. Despite bouts of optimism that the U.S. Federal Reserve would take a more dovish stance, and better-than-expected corporate earnings, Exhibit 1 shows that the vast majority of large-, mid- and small-cap indices declined through…

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Nov 4, 2022

Petroleum Helped the S&P GSCI Gain 6.7% in October

Commodities, represented by the broad-based S&P GSCI, rose 6.7% in October on the back of strength in the petroleum complex. During the month, the director of the International Energy Agency said the world is in the middle of “the first truly global energy crisis.” All petroleum constituents rose by double-digit percentage points. Livestock also rose,…

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Oct 28, 2022

Why Core Construction Matters

Look inside the S&P 1500 and its core components as S&P DJI’s Hamish Preston explores the performance of Equal Weight and sector indices, as well as highlighting how positive earnings can influence performance.

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Oct 17, 2022

The S&P China 500 Dropped 20.3% in Q3 2022 as China Equities Caught Up with The Global Sell-Off

The S&P China 500 saw its largest quarterly drawdown in seven years, declining 20.3% in Q3 2022. While Chinese equities outperformed their global and emerging market counterparts in Q2, they significantly underperformed in Q3 and have now caught up with 2022’s global market downturn, with the S&P China 500 now in the red 29.4% YTD….

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Oct 4, 2022

U.S. Dollar Strength Catches Up with Commodities

U.S. dollar strength caught up with commodities in September, with the benchmark S&P GSCI falling 7.8%. Almost all physical commodities are priced in USD, and a stronger USD has historically correlated to weaker commodity demand and lower commodity prices. But the S&P GSCI is holding onto a 21.8% YTD gain despite the USD strength, energy…

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