Costs

Peter Boockvar on commodity prices…

Here’s an update on commodity prices. The CRB raw industrials index closed yesterday at just under a 10 year high. The CRB food index closed at an 8 year high.
CRB Raw Industrials Index
CRB Food Price Index

Josh here – Inflation protection is on everyone’s minds right now. It’s the subject we’re getting the most questions on internally and it seems to be the driving force behind some of today’s most in-demand investment products. I think this thing is just getting started.

Low rates and the buying of assets by the Fed worked its magic in the stock market and the housing market over the last year. But at a certain point, it tips. And then people start focusing on the costs of all this stimulation. Not costs in terms of the government paying for it. Costs in terms of what it costs you to live your life and run your business. And then, before you know it, it becomes less fun.

JC and I talked about copper vs gold and other commodity charts yesterday, which you can watch below:

 

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