Brokerage

Two forces—tight energy supply caused by the Ukraine war and demand destruction inflicted by rate hikes—are pulling the commodities complex in opposing directions. Russia’s gas curtailments sent commodities skywards; central banks’ monetary tightening returned them to Earth. Do declining commodity prices present an opportunity for investors?

Recent months have seen the return of central banks as global net buyers of gold, with particularly emerging markets and developing countries stepping up their interest in the precious metal. With data suggesting central banks’ appetite for gold will only grow further, concerns over the US dollar’s reserve-currency role continue to mount.

Prices continue to rise steeply, eroding investors’ portfolios’ real values. Some assets offer strong hedges against surging inflation, with Treasury inflation-protected securities, precious metals, stocks, floating-rate bonds, real estate and commodities having historical track records of protecting investors during startling price growth.

Saudi Arabia isn’t one of the first countries to leap to mind as a tourist haven and FDI opportunity. But as the Kingdom opens up for business under its Vision 2030 plan, many investors are uncovering buried treasure and supporting companies such as The Red Sea Development Company in developing luxury, sustainable tourism projects.

The summer travel boom has helped to lift analysts’ expectations for the global airline industry as fears over the COVID-19 crisis continue to subside. And with strong pent-up demand expected to boost passenger numbers considerably over the coming months, the industry could well return to profitability as early as 2023.

On the list of human essentials, food eclipses them all. The food sector offers several avenues for investors. Elements Linked to Rogers International Commodity Index-Agriculture Total Return (RJA), Invesco Dynamic Food & Beverage ETF (PBJ), VanEck Agribusiness ETF (MOO) and Sustainable Future of Food UCITS ETF (VEGI) are four such funds.

It has been a concerning time for stablecoins, with the TerraUSD token losing its peg to the US dollar and the price almost plummeting to zero. Questions have arisen over the collapse, while regulators have stepped up their assessment of the sector and the potential risks they pose to the global financial system.

It has been a disastrous year for the bond market, as elevated inflationary expectations and rapidly rising interest rates led to seldom-seen double-digit losses in bond prices during the first six months. Has the rout finished, and should investors return to this beaten-down asset class once more? If so, should they re-enter cautiously?

As governments seek to boost their infrastructure spending, investors can capitalize on the boom—if they know which infrastructure ETFs to invest in. iShares Global Infrastructure ETF, Global X MSCI China Industrials ETF), Global X U.S. Infrastructure Development ETF and iShares Emerging Markets Infrastructure ETF are four to consider.

The drive away from fossil fuels isn’t all about the environment anymore. Soaring oil and gas prices are inspiring people to look at alternative energy sources earnestly. Clean-energy exchange-traded funds appear to be on a long-term upward track. Which four ETFs are most worthy of investor attention during this swift transformation?