MarkD is correct, innovative companies have a compounding effect which raw commodities do not. The general trend of technology is pretty much unstoppable.MarkD wrote: ↑Tue Oct 18, 2022 4:52 pm If I had to choose one sector in which to invest it would simply be semiconductors. Raw materials will do well but money flows to innovation. There is more profit potential in human ingenuity which has "value" added. It's been that way for a long time and I suspect that trend is never going to end.
That said, I am quite confident on commodities over the medium term, and am gradually moving some more of the portfolio to that area. A lot of the mining companies seem to be good value, for example, but they do have the ESG headwinds to deal with... (It's all very well being an enviro-Nazi, but if you want an electric car then you have to accept that someone digs up the copper for it).
If you are new to the space, be wary of buy & holding ETFs that track the price of commodity futures eg USO - over the long term they tend not to do as well as you might hope (due to futures rollover variations/costs).
