In the world of broad-basket commodity exchange-traded funds (ETFs) like the Invesco Optimum Yield Diversified Commodity Strategy (PDBC), my go-to in the peer group, in part due to its lack of a K-1, the past few weeks have delivered a "Strait Flush.” For those not familiar with poker, that’s a rare hand with a strong chance of winning. And for commodity investors, the effective closure of the Strait of Hormuz came at just the right time.
Just as gold (XAUUSD) and silver (XAGUSD) were polishing off their historic runs higher, the relay race continued, with the baton handed to oil (CBK26). That’s what happens every time war breaks out in the Middle East. But especially when Iran, a major producer and major combatant, is at the center of the action.
