https://www.youtube.com/watch?v=nKMZmEyJwqU
As world economies open up, oil costs are again to ranges not seen in three years. ETF Tendencies CEO Tom Lydon joined Maria Bartiromo on “Mornings with Maria” to debate rising oil costs forward of the G-7 Summit assembly between President Joe Biden and Russian Prime Minister Vladimir Putin.
With oil costs at round $72 per barrel as President Biden heads into the G-7 Summit assembly, Lydon famous how even with a gradual rise in costs, the visitors on the freeways reveals simply how keen People are to pay for it. With the nation re-opening, extra individuals are planning highway journeys.
Shifting gears, Lydon additionally said: “Alongside the identical traces is inflation. We have seen agriculture costs go up, base steel costs go up, housing costs go up, labor costs on the decrease finish have proven the issues had with getting youthful workers again to work. They’re getting paid by stimulus checks to really keep at residence over the summer time. So, after we look to the Fed and their messaging, most individuals are saying they don’t seem to be going to present us any actual steerage till they get collectively at Jackson Gap on the finish of August, we may even see a lot harm between from time to time.”
So far as how ETF flows might change within the commodities markets, Lydon famous how the bond market might be broken. Whereas most flows went into mounted revenue ETFs final 12 months, it has been a lot totally different in 2021. There’s been a giant shift towards commodity-related ETFs, together with the Invesco DB Commodity Index Monitoring Fund (DBC), which is over 5 billion {dollars} at current.
Lydon added that “it has been on hearth, and it is a good way to hedge in opposition to inflation.”
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