2024-04-02 05:44:42 ET
Summary
- Commodities are making a comeback due to Chinese manufacturing resurgence and a strong US economy.
- The abrdn Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF is a good portfolio addition for 2024.
- The ETF follows the Bloomberg Commodity Index 3 Month Forward TR and is currently overweight gold and the oil construct.
- BCD takes a balanced approach in the various commodities sectors, with a futures based approach.
- The fund invests its non-margined cash in treasuries, thus generating a high dividend yield as well.
Thesis
After being left for dead at the end of last year, commodities are making a comeback, driven by a resurgence in Chinese manufacturing and a strong U.S. economy which has defied all odds in term of slowing down. Compounding an increasingly optimistic picture for the commodities asset class is the potential for a stagflationary environment in the U.S., which has driven gold prices significantly higher this year....
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BCD: Ride The Resurgence In Commodities