Skyrocketing Inflation - Commodities to the Rescue? (#3/4)

Presented by

Daniel Stoianov, NTree International

About this talk

Inflation is at decade highs in both the US and UK. An increase in certain commodity prices such as oil and agricultural products directly impact the CPI as consumer fuel and food prices reflect the commodity price increase: essentially, commodities are often a driver of inflation. However, there are also indirect effects of price increases on the CPI having to do with higher input costs being transferred to consumers - this inflation measure is known as the PPI. Historically, commodities have had a statistically significant positive unexpected inflation beta between 7 and 9, meaning that an increase in unexpected inflation suggests a larger increase in commodity prices. In the third installment of this series, professional investors will gain more of an insight into input cost inflation, and how an increase in such creates a feedback loop for inflation as a whole. Can commodities help your portfolio outperform inflation when traditional assets are struggling?

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NTree’s goal is to educate European investors on the investment opportunities in the Chinese and Commodities markets. As the Chinese economy continues to grow at breakneck pace and China remains at the forefront in innovation in high-tech sectors, the investment case for China is stronger than ever. Meanwhile, world market volatility further highlights the necessity for European investors to consider adding Commodities to their portfolios both for diversification, and for momentum. We believe that both phenomena are inextricably linked, and present unique opportunities to the discerning investor - we intend to support investors in uncovering those opportunities.