Coffee futures returned +217% over the past five years.
The S&P 500 gained +142%. US Bonds returned +6.4%.
Each moved for different reasons.
Stocks followed earnings expectations. Bonds tracked the rate cycle.
But coffee prices surged on weather disruptions, crop disease, and supply constraints across emerging-market producers — physical-world forces that have nothing to do with forward P/E ratios or the Fed.
For allocators still anchored to traditional assets: persistent trends in global markets show up in places where traditional financial variables play almost no role.
That’s the essence of diversification.
THE INVESTMENTS BEING DESCRIBED, INCLUDING COMMODITY INTERESTS, ARE SPECULATIVE, INVOLVE SUBSTANTIAL RISK, AND ARE NOT SUITABLE FOR ALL INVESTORS. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
