Commodities beat stocks for third straight month

In February, metals, crops and fuel posted bigger gains than the dollar, bonds and stocks for the third straight month, representing the longest streak since June 2008. In February, metals, crops and fuel posted bigger gains than the dollar, bonds and stocks for the third straight month, representing the longest streak since June 2008. 

Political instability in the Middle East and North Africa boosted the appeal of precious metals and fueled crude oil's rise; moreover, quickly rising inflation rates hit, among others commodities, cocoa and cotton crops, sending them higher.Political instability in the Middle East and North Africa boosted the appeal of precious metals and fueled crude oil's rise; moreover, quickly rising inflation rates hit, among others commodities, cocoa and cotton crops, sending them higher.

The MSCI All-Country World Index of equities, a measurement of the rate of return on investment in 45 nations, returned 3 percent in the month, while the S&P GSCI Total Return Index of 24 commodities increased 3.8 percent in February. A compendium of factors could be causing the phenomenon, analysts say.The MSCI All-Country World Index of equities, a measurement of the rate of return on investment in 45 nations, returned 3 percent in the month, while the S&P GSCI Total Return Index of 24 commodities increased 3.8 percent in February. A compendium of factors could be causing the phenomenon, analysts say.

With faster global economic growth comes rises in raw material prices; price gains have sped up since the toppling of the autocratic governments in Egypt and Tunisia. Meanwhile, many world governments are raising borrowing costs and upping capital reserve requirements for banks, effectively squeezing returns on investments in equities.With faster global economic growth comes rises in raw material prices; price gains have sped up since the toppling of the autocratic governments in Egypt and Tunisia. Meanwhile, many world governments are raising borrowing costs and upping capital reserve requirements for banks, effectively squeezing returns on investments in equities.

Kevin Rendino, a money manager at BlackRock Inc, told Bloomberg that while "each commodity is different, there has been real economic demand for these commodities since the economy began recovery."Kevin Rendino, a money manager at BlackRock Inc, told Bloomberg that while "each commodity is different, there has been real economic demand for these commodities since the economy began recovery."

He added: "These commodity price increases are staggering." He added: "These commodity price increases are staggering."