With commodities markets by and large rising with inflation, this makes commodities one of the very rare asset classes that benefits from rising inflation. Commodities are a crucial asset class when it comes to market diversification within a portfolio. And have historically negative correlations to the stock market. This can offer some degree of inflation protection.

Although the world is off the 40 year inflation highs we saw just two years ago, it’s certainly proving stubborn to bring back down closer to 60 year averages.

Here at Private Banker FX, commodities speculation remains an integral part of the overall trading strategy.

Crypto and inflation

The jury remains out on the L/T ability of Crypto assets holding up as a viable SOV against rising inflation due to the fact these are newer asset classes. However, BTC has performed well over the latest period of persistent inflation when many Investors expected longer price suppression within the Crypto markets.