Commodities entered 2023 behind a strong performance in 2022. For investors revisiting their portfolios ahead of 2024, it may be worth assessing the commodities outlook. From energy to precious metals, commodities can add meaningful diversification to a portfolio. VettaFi’s Vice Chairman Tom Lydon hosted a panel discussion with Direxion’s Head of Sales and Distribution and Alternatives Ed Egilinsky, and John Love, president and CEO of USCF Investments.
Looking Back on the Commodities Outlook
The trio opened up the conversation looking back on the year in commodities, from China’s disappointing reopening to energy prices. Following a decade of low inflation and low interest rates, commodities overall had lagged. However, the higher-for-longer rate environment, combined with persistent inflation, has boosted the commodities outlook since then.
“If you held a commodity allocation over the last three years, you’ve held up very well against stocks and bonds,” Love said.