April 2018

Commodities Shine Light on the Appeal of Bonds, Physical Assets (Bloomberg Intelligence) -- Among the top-performing major asset classes in 1Q, commodities' relative value is gaining as stock-market volatility awakens. Weakening industrial vs. precious metals indicate a peak in bond yields. A declining greenback and the strongest yuan since the 2015 devaluation is supporting the commodity foundation. A recovering VIX index is adding transition nuances, pressuring industrial metals toward the best relative supports in a more-youthful bull market. The Fed's March interest-rate hike gave commodities the green light to rally. The question is what it'll take to keep gold from breaking free from its narrower cage. Grains should remain stalwart in 2018, in need of another exceptional U.S. production year to suppress an anxious bull.