Global supply shortages driven by the Russian invasion of Ukraine, combined with restrictive U.S. domestic energy policies, would normally provide a solid macroeconomic backdrop of support for global commodity prices. But a global economic slowdown, particularly in China, provides an offsetting counterbalance. Copper is often viewed as a leading indicator of expected future economic growth—in which case, we are in for a weak global economy in 2023.
Source: YCharts, six-month data through 11/21/22. You cannot invest in an index and past performance is no guarantee of future results.
The recent decline in the U.S. dollar (which we have been expecting and continue to believe will continue) has not helped global commodity prices.
Source: YCharts, YTD data through 11/21/22. You cannot invest in an index, and past performance does not guarantee future results.
Non-traditional strategies may perform best in rising interest rate and increased volatility market environments. We believe we are in just such a regime, though volatility has fallen recently—a trend we do not expect to continue.
Source: YCharts, YTD data through 11/21/22. You cannot invest in an index, and past performance is no guarantee of future results.
Unless otherwise stated, all data as of November 2022.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Funds before investing. To obtain a prospectus containing this and other important information, please call 866.909.9473, or visit WisdomTree.com to view or download a prospectus. Investors should read the prospectus carefully before investing.
There are risks associated with investing, including the possible loss of principal. Foreign investing involves special risks, such as risk of loss from currency fluctuation or political or economic uncertainty. Investments in emerging or offshore markets are generally less liquid and less efficient than investments in developed markets and are subject to additional risks, such as risks of adverse governmental regulation and intervention or political developments. Funds focusing their investments on certain sectors and/or regions and/or smaller companies increase their vulnerability to any single economic or regulatory development. This may result in greater share price volatility.
Fixed income investments are subject to interest rate risk; their value will normally decline as interest rates rise. High-yield or “junk” bonds have lower credit ratings and involve a greater risk to principal. Fixed income investments are also subject to credit risk, the risk that the issuer of a bond will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer’s ability to make such payments will cause the price of that bond to decline.
You cannot invest directly in an index. Index performance assumes reinvestment of dividends but does not reflect any management fees, transaction costs or other expenses that would be incurred by a portfolio or fund, or brokerage commissions on transactions in fund shares. Such fees, expenses and commissions could reduce returns.
This material contains the opinions of the authors, which are subject to change, and should not be considered or interpreted as a recommendation to participate in any particular trading strategy or deemed to be an offer or sale of any investment product, and it should not be relied on as such. There is no guarantee that any strategies discussed will work under all market conditions. This material represents an assessment of the market environment at a specific time and is not intended to be a forecast of future events or a guarantee of future results. This material should not be relied upon as research or investment advice regarding any security in particular. The user of this information assumes the entire risk of any use made of the information provided herein.
Kevin Flanagan, Rick Harper, Jeremy Schwartz, Scott Welch and Jeff Weniger are registered representatives of Foreside Fund Services, LLC.
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