| You know, an 18 percent gain over 12 months isn’t a bad return. That’s how much the S&P 500 has appreciated since April 2013. But the index is now stalled. In fact, since New Year’s Day, domestic equities have been ceding ground to commodities—a reversal of a two-year trend.
Consider “soft” commodities such as coffee and cocoa. In the past year, “spot” (immediate delivery) prices for Arabica coffee have shot up 53 percent because of a crippling drought in Brazil, the world’s top producer. Supply deficits have similarly ratcheted cocoa prices up 25 percent over the last 12 months. Corn’s been a different story, though. Cash maize prices have slumped 17 percent amid rising inventories...............................................Full Article: Source
|