Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Which Commodities Are The Safest Play To Combat Inflation?

By Michele SchneiderStock MarketsMay 06, 2021 12:22AM ET
www.investing.com/analysis/which-commodities-are-the-safest-play-to-combat-inflation-200577866
Which Commodities Are The Safest Play To Combat Inflation?
By Michele Schneider   |  May 06, 2021 12:22AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Recently there has been a surge of articles pertaining to rising inflation as the Federal Government plans to add more debt with upcoming spending from the infrastructure bill and another stimulus package.

XLE Daily Chart
XLE Daily Chart

Inflation has also become an increasingly touchy topic.

Wednesday, Janet Yellen (Treasury Secretary) backtracked her recent comments about how it might be necessary to increase interest rates to keep the market from overheating.

However, fear of inflation could still be why investors are hesitant to add more money to the current market.

If so, it can also be seen in the major indices’ reluctance to clear/hold over recent highs.

Additionally, two of the major indices are having trouble at their current price levels with the Russell 2000 (IWM) back underneath its 50-DMA at $223.28 and the NASDAQ 100 (QQQ) floating not far above its 50-DMA at $308.99.

However, if the markets’ weakness stems from fear of rising inflation, Mish has successfully stayed ahead of the curve with her repeated trade picks in commodities going back to the beginning of the pandemic.

More government spending paired with an increasing deficit made room for commodities to flourish, like corn (CORN), sugar (CANE), gold (GLD), and Investco Agricultural Fund (DBA).

With that said, commodities that were thought to decrease in value under the new administration are making push upwards.

One sector is the energy sector (XLE).

It has recently crossed back over its 50-DMA and now is making a run for highs at $54.37.

If securities continue to have trouble heading into the second half of the year and the inflation rate increases, the commodities space offers a safer play in this choppy market.

ETF Summary

S&P 500 (SPY) Resistance 420.72.

Russell 2000 (IWM) Watching for second close under 223.38 the 50-DMA.

Dow (DIADoji day at new high area.

NASDAQ (QQQ) Next support at 325.06.

KRE (Regional Banks) Doji day. Support 67.41.

SMH (Semiconductors) Resistance 241.50 area.

IYT (Transportation) 269.36 the 10-DMA support.

IBB (Biotechnology) Next support 146.75.

XRT (Retail) Holding over the 10-DMA at 93.44.

Volatility Index (VXX) Short lived cross over the 10-DMA.

Junk Bonds (JNK) Flirting with the 10-DMA at 109.01.

XLU (Utilities) Support 65.29 held.

SLV (Silver) 23.95 support the 50-DMA.

VBK (Small Cap Growth ETF) Needs to hold over 274.87.

UGA (US Gas Fund) 34.68 resistance area.

TLT (iShares 20+ Year Treasuries) 138.26 50-DMA support.

USD (Dollar) resistance 91.40 area.

MJ (Alternative Harvest ETF) 19.83 support.

LIT (Lithium) 62.27 pivotal area.

XOP (Oil and Gas Exploration) 85.70 resistance.

DBA (Agriculture) Broke 18.74 resistance

Which Commodities Are The Safest Play To Combat Inflation?
 

Related Articles

Gary Gordon
Think Global, Act Local? By Gary Gordon - Dec 02, 2021 2

Since the 2008 financial crisis, U.S. investors have counted on Federal Reserve bailouts, bond buying, and digital money printing. Significantly lower interest rates combined with...

Which Commodities Are The Safest Play To Combat Inflation?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email