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WI Daily: October goes to commodities

In response to the UK inflation data, editor, Rory Palmer looks at another traditional inflation hedge – commodities

What Investment, Rory Palmer, 18 NOV 2021

The latest inflation data announced on Wednesday revealed that UK CPI inflation was at 4.2% in October, up from a reading of 3.1% in September.

In Tuesday’s WI Daily, I looked at how an investor could safeguard their portfolio from rising inflation by considering real assets.

Real estate, infrastructure and transport offer a low correlation to equities and bonds and can provide that level of diversification as prices continue to rise.

But, what about commodities?

According to figures collated by QuotedData, investment trusts in the Commodities and Natural Resources sector were the place to be in October, echoing the landscape at the start of the year.

At Trustnet, I would often run investment trust data studies, and Geiger Counter, a play on the exploration and development of energy – particularly uranium, was often at the top of performance tables.

Energy prices have soared over the last few months, which has given the impetus to energy exporting counties, as opposed to energy-importing ones.

So, it was unsurprising to see Geiger Counter, managed by Rob Crayfourd and Keith Watson up there again in QuotedData’s investment company roundup for October.

Read more here




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