BCX - BCX: Mitigate Inflation Risk With A 5.2% Yield But Short-Term Risks Are Apparent

• As inflation has risen, commodity producers have become top-performing stocks while most fixed-income investments are becoming lackluster.
• BlackRock's BCX offers a means by which income investors can mitigate inflation risk and generate a strong 5.2% yield.
• BCX owns a diversified basket of commodity-centric equities and generates an income by selling call options on a third of its assets.
• BCX's performance is tightly correlated to inflation expectations which I expect to rise over the years to come due to structural commodity production declines.
• In the short run, BCX has downside risk due to negative trends in economic demand and expected Federal Reserve tapering.

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