DJCB - Collapsing Prices In An Inflationary Environment

September, 13 2021 11:09 AM ETRACS BLOOMBERG COMMODITY INDEX TOTAL RETURN ETN SERIES B

Over the past four months, in parallel with spectacular gains in the prices of coal and natural gas, there have been spectacular declines in the prices of lumber and iron-ore.
A common argument against there being a general inflation problem is that the large rises in commodity prices are due to temporary market-specific supply issues, leading to large price declines as soon as the supply issues are resolved.
As long as the inflation doesn’t become ‘hyper’, that is, as long as the value of money doesn’t collapse relative to everything, a large and rapid rise in the price of a commodity will result in additional supply and/or reduced demand, eventually leading to a large price decline.

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Company Name:	ETRACS BLOOMBERG COMMODITY INDEX TOTAL RETURN ETN SERIES B
Stock Symbol:	DJCB
Market:	NYSE