Conventional wisdom dictates that as the U.S. dollar rises, commodities do the opposite. Over the past year, conventional wisdom has held true; the PowerShares DB US Dollar Index Bullish (NYSE: UUP) has climbed 10.7 percent, while the GREENHAVEN Continuous Commodity Indx Fnd (NYSE: GCC) has plunged 23.7 percent.
Commodities And The Greenback
However, there are some data points that suggest some commodities experience periods of strength even as the greenback experiences the same. Sugar is a prime example. In the world of exchange-traded products, the Teucrium Sugar Fund (NYSE: CANE) and the iPath Bloomberg Sugar Subindex Total Return Sm Index (NYSE: SGG) are higher by 6.8 percent and 9.6 percent, respectively, over the past month.
UUP, the aforementioned dollar ETF, is up 2.7 percent over the same period.
“However, there are other commodities that just aren’t so badly impacted. Feeder ...
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