Inflation is what the average citizen is afraid of, trying to preserve his savings. There is even such a winged quote on this topic: “Invest in inflation, because only it is constantly growing.”
Those who follow our publications have probably noticed that the main idea
in the long-term forecast in relation to, in principle, exchange-traded instruments, is the expectation of a commodity-raw material upward cycle and, as a consequence, inflation.
Why do I expect inflation to rise globally in the world? Everything is very simple, zero rates from the world central banks + unlimited monetary incentives, a historically low ratio of the cost of goods to the high-tech sector and the cyclical nature of the economy.
First of all, when inflation is meant, then we are talking about the rise in prices for food products. So how to make money on this?
Here is an overview of one of the world’s largest ETFs specializing in investments in agricultural commodities (coffee, cocoa, wheat, live cattle, soybeans, sugar, corn, etc.). The ticker for this instrument in the US stock market: DBA
A twelve-year downtrend of declining commodities and inflation has come to an end. Many media outlets began to warm up the topic of the expected surge in inflation, tantamount to what happened in the 1970s. The Russian government, and the president in particular, are already very concerned about the rise in food prices, but administrative measures to curb prices will hardly help, this will only aggravate the situation, a deficit or a sharp rise in prices, but a little later, the market, as a rule, will regulate everything itself.
There are all the prerequisites for the development of long-term growth of the ETF shares in question, with consolidation above $ 30 in the future.
Strong Buy recommendation. An important feature: shares of this ETF are available only to qualified investors
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Good luck to all!!