Commodities Are Back, so Don’t Miss Out!

YOUNGSTOWN, Ohio – After a bit of a pull back in late January, markets are in “full melt up mode” at the beginning of February, says John Stewart, chief investment officer at Farmers Trust Co.

In the first seven days of trading, the S&P 500 is up 5.5%, “and smaller company stocks are doing even better,” Stewart says. The Russell 2000 small company index is up nearly 20% since the beginning of the year, he says.

But while everyone is watching the stock market rise, Stewart cautions investors not to miss out on the budding bull market in commodities. Everything from crude oil to corn to copper and lumber have been on the rise, he says.

“In fact, a broad basket of commodities has more than doubled the return on the S&P 500 index so far this year,” he says. “Turns out aggressive monetary and fiscal policy doesn’t just make stock prices rise, it also puts downward pressure on the U.S. dollar and therefore upward pressure on everything priced in dollars.”

For more on these topics, as well as Stewart’s insights as he keeps his eye on rising interest rates, watch the latest installment of The Investors Edge.

Copyright 2021 The Business Journal, Youngstown, Ohio.