U.S. inflation rate took the headlines as it hit a record 40-year high of 8.6% in May 2022. This prompted the Federal Reserve to take an aggressive stance to accelerate the subsequent interest rate hikes and put a lid of the soaring inflation. Apart from the massive ‘money-printing’ stimulus, China’s supply chain disruptions and the Russia-Ukraine conflict have played a major role for the elevated inflation rates.

Impact of High Inflation

In effect, it resulted in serious percussions such as shortage of semiconductor parts, higher oil prices and even a chicken export ban due to increased chicken feed prices! Many analysts and experts are calling for the start of a commodity super cycle that could last several years, fuelled by decades of low interest rates and underinvestment in downstream production. With that in mind, investors might actually want to add some exposure to the commodity boom or also hedge against...