We regularly promote commodities, whether industrial metals or agricultural commodities, in our asset allocation strategy.
It should be noted that currently the agricultural commodities are showing a good resistance while the Shares are at the heart of a correction with the outcome uncertain given the lack of buoyancy of the rebound.
The drought in Argentina is one of the causes of good prices, especially for Soybean and Corn.
The short term score of our Asset Allocation Robot has been positive for agricultural commodities since 26/01/2018, at 54/100 (our score is positive beyond 50/100) while it was negative for many weeks.
Among the raw materials that currently stand out are Corn (Teucrium – CORN), Soybean (Teucrium – SOYB), Wheat (Teucrium – WEAT) and Cocoa (iPath Bloomberg Cocoa – NIB).
These differences in stock market behavior between assets illustrate the interest of an approach covering all Asset classes, which ETFs and ETNs allow.
