Having lived through the 1970's commodity/inflation cycle as a commodity analyst, I do not believe that this current bout of inflation is "temporary." I believe inflation will heat up further in the months and years ahead driven more by demand pressures, supply lags, poor weather and growing conditions, and wage increases. Therefore, my top commodity pick for 2022 and beyond is the Invesco DB Commodity Index Tracking Fund (DBC) .
Demand for commodities typically changes slowly with increases in the GDP and personal disposable income.
This Time It's Different
Price Will Be Used to Ration Supplies in the Years Ahead
Bottom line strategy: When you go to the grocery store and contemplate whether you are going to purchase chicken thighs instead of chicken breasts, or fish from Chile instead of Norway, you can also think about going long DBC. Risk below $19. Add on strength. $37 is our first price target.