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For Your Money is brought to you by NelsonCorp Wealth Management.
Brandy Auterson-Hurst:
It’s now time for 4 your money. We’re joined by David Nelson, CEO of NelsonCorp Wealth Management. Welcome back, David.
David Nelson:
Thank you very much, Brandy.
Brandy Auterson-Hurst:
So while the stock market has received most of the attention this year, we have started to talk a lot more about commodities. So what is the reason for the focus there?
David Nelson:
Well, the broad commodity index has really had a great run in 2021 and the first part of 2022. After peaking in June, the trend has really changed in a very negative trend, but it makes sense given that the rate of inflation really started falling. So the chart I brought today gives us a little visual as far as of it, and as you can see as far as the blue line on the top, that’s the Bloomberg commodity index level. And the yellow bars on the bottom are the monthly price change as far as the index itself. And what this is illustrating if you look at the far right, is essentially a little bit of an uptick. And granted it isn’t much, but the far right, you see the yellow line going up, the bar going up about a percent and a half. It’s not an amazing thing and remarkable by any stretch of imagination, but it is indicating as far as maybe a change that’s coming about as far as in this area.
Brandy Auterson-Hurst:
So what implications does this have for viewers’ investments?
David Nelson:
Well, I don’t think it’s a catalyst to run out and buy a whole bunch of commodities, but it might be the justification for a continuing uptrend as far as in risk assets. That’s kind of our best guess at as far as this point in time. Again, be careful, but I think this is good news as far as pertaining to some of the risk assets.
Brandy Auterson-Hurst:
All right, David, thanks for your insight today.
David Nelson:
Thank you.
Brandy Auterson-Hurst:
If you missed any of our discussion, we’ll make it available for you on ourquadcities.com.