Buy cocoa, not crypto “” the case for investing in commodities in 2021

Buy cocoa, not crypto “” the case for investing in commodities in 2021

Move over Bitcoin. There's a new and exciting trade in town: commodities.

Fueled by multiple factors, including a vaccine-driven turnaround in global growth and increasing inflation concerns, the broad-based commodities rally is on white-hot tear.

The Invesco DB Commodity Index Tracking Fund "” which looks to achieve diversified commodity exposure "” is up 56% over the past year alone.

But before you jump in head first, it's important to at least know the basics. Commodities trading is a different beast than stocks, with a unique risk versus reward profile, so an extra layer of due diligence is required.