The latest Market Commentary by Goehring & Rozencwajg released on May 18, 2022 is another must read (download link: http://gorozen.com).

If investors had constructed a natural resource equity portfolio consisting of 25% energy, 25% metals & mining, 25% precious metals, and 25% agriculture, they would have significantly beaten the stock market in three historical periods of radical undervaluation (1929, late 60's, late 90's). Another time period in which commodity equities are radically undervalued? Today. Most importantly, in 1970 a similarly constructed portfolio would have returned 400% over a decade, handily beating the stock market which only returned 80% in that inflationary time frame.

G&R states that if the stock market stays at present levels, commodity prices would have to surge 600% to become overvalued relative to the stock market.

My commodity portfolio includes some of the following:

$ARX.TO (gas & condensate)

$SDE.TO (oil & gas)

$WCP.TO (oil)

$VET.TO (oil & gas)

$STEP.TO (oil field services)

$AN.V (lithium)

$ATX.V (copper)

$BRW.V (lithium)

$FDY.CN (copper)

$PMET.CN (lithium)

$FL.V (lithium)

$FPX.V (nickel)

$SPC.V (nickel)

$NGEX.V (copper)

$SR.V (vanadium)

$SURG.V (copper)

$VCU.V (copper)

$FOXG.V (gold)

$KGC.V (gold)

$OZ.V (gold)

$AU.V (gold)

$APGO.V (silver)

$ERTH.CN (fertilizer)