Commodities are back on my radar

I use this ratio (in blue), being the Wilshire 5000 Total Market Index divided by the S&P Goldman Sachs Commodity Index (SPGSCI) to help identify when equities are either cheap or expensive relative to commodities.

Readers may piece together that I have bearish on commodities for the past 15 months or so.

I have circled 13 notable periods over the past 30 years when this ratio was overbought on a weekly basis.

Commodities are now entering such a period of being relatively attractive compared to equities.

July, 4, 2023

by Rob Zdravevski

Karri Asset Advisors

rob@karriasset.com.au