Despite cooling in October and November, inflation remains way above the Fed's 2%-3% target range. Shares of companies exposed to commodities, such as metals and agricultural products, act as a natural hedge against inflation, as commodity prices tend to increase during such periods.
According to Goldman Sachs Group Inc. (GS) commodities will be the best-performing assets in 2023 and are expected to offer investors more than 40% returns. Furthermore, commodity stocks help in portfolio diversification, thereby minimizing risk.
