Commodity currencies and raw materials rise again

The beginning of the week was characterized by moderate pressure on the stock markets. The S & P500 has already declined during the fifth session. Record levels have been left behind. Long-term bonds hit a sell-off. In parallel, the cost of raw materials is growing. Most of the reasons for this situation have a macroeconomic rationale.

The service industry has been hit hard by coronavirus restrictions. Against this background, there was a recovery in production to the level before the start of the pandemic. Many governments have used a variety of incentives to support their economies.

Problematic logistics also affect markets. The cost of raw materials increases if they are not available. Investors have lost most of their inflation hedge. The world economy is only trying to recover, so so far none of the experts can predict the course of events. The level of uncertainty is higher than ever, and this is the whole intrigue. Now you can invest in gas, oil, metals and other resources, which will increase in price in the future. Speculation at this level is now reasonable.

Yuri Solodovnikov Analyst

» All articles