Commodity Comeback?
Is it time to bet on commodities again?
Already riding a huge run-up from the pandemic lows, commodity prices accelerated with Russia's invasion of Ukraine, peaking last summer. Raw materials subsequently tumbled from nosebleed levels, but some now expect a comeback.
The near-term bull case is predicated in part on economic optimism. After all, the US is apparently going to dodge a recession. Or at least according to+ America's second-largest bank. And Beijing is surely going to provide for me
The thesis could be: commodities as bets on soft-landing without the valuation/crowded trade concerns of, say, the S&P 500 index. Similar, perhaps, to other parts of the equity markets. And if you think inflation will remain elevated until 2025, a bet on that.