another related comments from a newsletter JPMorgan said in a recent note that investors need to be ready for a potential 40% commodities rally in a market shift. The investment bank said commodities could surge far into record territory in the event that investors boost their allocation to raw materials at a time of rising inflation. “While allocations appear to be above historical averages on commodities, they are not very overweight. That suggests scope for gains in raw materials.”
“In the current juncture, where the need for inflation hedges is more elevated, it is conceivable to see longer-term commodity allocations eventually rising above 1% of total financial assets globally, surpassing the previous highs. All else being equal, that “would imply another 30% to 40% upside for commodities from here.”
RTR Price at posting:
41.0¢ Sentiment: Buy Disclosure: Held
