Another 60% Upside In The ETF, Invesco DB Agriculture Fund, DBA

avatar

image.png

A week ago, I talked about how we witness 20% of all US dollars ever printed occurred in 2020 as a means to help jump start the economy. The US Feds had no choice, it was either inject trillions of dollars of stimulus or it was going to be The Great Depression – Part 2. So the US Feds decided to pay up now and deal with the consequences later. There is a lot of debate out there whether we will see deflation or inflation, but the proof is in the pudding.

A couple of days ago, the U.S. Labor Department reported that a key measure of inflation, the Consumer Price Index (CPI), increased 1.4% in 2020, the smallest yearly gain since 2015. But the CPI for December rose 0.4%, the largest gain since August.

Since COVID-19 I food shop going to my regulars like Costco, Walmart and etc. Many months ago, I notice that my Shady Brook Farm 3 lbs turkey package went up $1 or 17%.

image.png

This is called inflation and is the result of the US dollar losing its purchasing power. It’s the reason why Cotton was up 18%, Soybeans were up 50%, Wheat was up 18% and Corn was up 35%, the highest price has been since 2013, but has more room to go up in price.

image.png

It's why I think the Invesco DB Agriculture Fund (DBA), ETF is worth taking a look at.

Bloomberg this weekend reported on the boom that is taking shape in the commodities markets. Investors are moving from the bull market in stocks to areas further afield in search of returns in a very-low interest rate environment.

Invesco DB Agriculture Fund (NYSE: DBA) With $691.8 million in assets under management, this is one of the largest ETFs that holds actual agricultural commodities. Its 26-week return rate stands at 20.79%, according to ETF Database. Its share price is up 20.79% over the past six months and closed last week at $16.56.

Source

After hitting a bottom last Spring on the monthly chart, price trades at roughly $16. However, the chart suggest price can increase to the monthly supply at $26.

image.png

This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.

Posted Using LeoFinance Beta



0
0
0.000
1 comments