trades

Commodities, the wild west among the asset classes, is a fickle beast. Having tradeable assets that are directly tied to the physical underlying complicates matters. They react to changing economic dynamics in ways that are drastically different than stocks and bonds. For instance, commodities tend to benefit from rising inflation – increased prices of commodities act as a hedge.

Commodities trading, much like other asset classes, follows the fundamental rules of supply and demand in economics. On a seasonal basis, the stars may align to form the perfect storm of commodities: a supercycle.