5 Commodities Are Outperforming The Market During Inflation
The E-mini S&P 500 futures (ES) are down 20% year-to-date (YTD).
Yet despite this, there are currently five commodities that are absolutely crushing it right now.
Not only are they outperforming the S&P 500…
They’re rising in direct proportion to inflation.
Which means the higher inflation gets… the more potential there is for these commodities to benefit!
You can use them right now to profit.
In addition to these 5 commodities, I also have a bonus ETF for you that’s also currently outperforming the S&P 500.
I would definitely consider these “inflation proof” - so let’s get right to it!
Inflation-Proof Commodity #1: Natural Gas
Although Natural Gas futures (NG) dropped 32% since the beginning of June… falling from $9.32 to $6.25…
It’s still up 81% for the year.
We’re expected to have some brutal heat waves this year, and that’s been keeping NG prices up.
Bulls are rushing in to buy this dip, and now may be a good time to get in.
NG has been outperforming the market and I expect it will continue to do so over the next few months.
Inflation-Proof Commodity #2: Crude Oil
Crude Oil futures (CL) are up 41% on the year.
The Federal Reserve’s recent announcement caused CL to drop 11%.
But that’s still only about half the loss of the S&P’s 20% drop.
Not to mention, gas prices keep rising… which would benefit this sector immensely.
To see how I’d play this situation, click here and learn more about my trading strategy.
Inflation-Proof Commodity #3: Heating Oil
Heating Oil futures (HO) are one of the hottest commodities on the market this year.
Shares are up over 100% year-to-date.
Recently, there have been volatile price swings with the costs of heating oil.
Prices fluctuated between $4 and $6, and this volatility started when the Russia-Ukraine conflict began.
But despite all that, HO is still outperforming the market and looks to be a stable pick during inflation.
Inflation-Proof Commodity #4: Corn
E-mini Corn futures (XC) have had a wild ride, year-to-date.
It hit a high of $695 before dropping down 28% to the $500 level.
Since then, it’s recovered all its losses and is currently sitting at $746.38… up 49% from the $500 level lows.
And right now, XC has broke past its down trendline and is gearing to head up.
Click here to learn more about how to play trendlines for profits.
Inflation-Proof Commodity #5: Soybeans
Last on the list are the E-mini Soybeans futures (XK).
XK recently fell 8%, from $1,745 to $1,591.38.
But year-to-date it’s up 16%.
Despite the 20% pullback we saw in the S&P 500, XK only budged 8%.
It’s a good sign that it will continue to outperform the overall market during inflation.
Bonus Inflation-Proof ETF: USCI
Now it’s time for your bonus pick!
If you’re one of those ETF traders… or index fund investors… and you prefer a broader strategy compared to specific commodities…
Then take a look at the United States Commodity Index fund (USCI).
USCI is a great way to get exposure to a basket of commodities.
If you’re not comfortable directly investing in soybeans or corn, but you still want to have exposure to their profits, USCI is the one for you.
All the commodities on today’s list are in the USCI as well.
When you’re thinking of moving into a stock or a trade, it’s important to think about it on a technical level.
That’s why at Stock Navigators, we teach you how to use technical analysis.
It might sound difficult at first, but it’s actually very straightforward system.
Right now, you can watch a free podcast to learn more about the Stock Navigators trading strategy.
Click here to learn more about trading stocks with technical analysis.
Stock Navigators
Stock Navigators
Stock Navigators has one mission - to help people improve their lives via trading. And it's all made possibly by our team of stay-at-home day traders who provide the most up-to-date analysis every single day. With over twenty years of combined trading experience, Stock Navigators helps you stay on top of the market.
You may also like
Get started on your path to financial freedom
Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.