Olena Stoica

Been diving into commodity markets more seriously lately, specifically looking at how to build a diversified portfolio beyond just equities and bonds. I'm seeing a lot of academic talk about negative correlations between certain commodities and the broader market, or even between different commodity sectors themselves. My question is, for those of you actively trading commodities, how much weight do you actually give to these theoretical correlation figures in your real-world allocation and risk management? Is it more about specific market conditions, or do you still find that long-term correlation trends hold up enough to be useful for diversification in practice?

With CPI data due out shortly, I'm keeping a very close eye on how the tech sector is positioned. The recent rally feels a bit stretched given lingering inflation concerns, and any upside surprise could quickly put pressure on growth stocks. My watchlist is heavily weighted towards names with solid cash flow and less reliance on continued multiple expansion, should we see a hawkish shift in tone. It's a tricky spot; still seeing some interest in $LDO though it's not directly correlated, but overall, a cautious stance seems prudent for US equities into the numbers.