Investing

Commodities look cheap

The chart below shows commodities are as cheap relative to stocks as they have been over close to the last 50 years. Interesting to note there’s no readily identifiable ‘bubble’ or ‘crisis’ to account for the extreme valuation (at least, not that we can see with simple foresight). Old fashioned reversion to mean suggests if we see a pullback in equities prices, commodities could be a good place to hide.

Hat tip: Credit Suisse

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