Why QE helps equities more than commodities

There are three main reasons why further monetary stimulus, including quantitative easing (QE), is likely to benefit equities more than it benefits the prices of industrial commodities, including crude oil and base metals. In summary, industrial commodities are more sensitive to near-term global economic prospects (which remain poor), equities are a closer substitute for bonds in investor portfolios, and the demand and supply responses to rising commodity prices limit their upside.