New commodities supercycle kicks-off – JP Morgan

A fresh commodities supercycle may just have begun, with years-long gains in the offing, JP Morgan Analysts noted in their latest report published Wednesday.

Key quotes

A long-term boom across the commodities complex appears likely with Wall Street betting on a strong economic recovery from the pandemic and hedging against inflation

Prices may also jump as an “unintended consequence” of the fight against climate change, which threatens to constrain oil supplies while boosting demand for metals needed to build renewable energy infrastructure, batteries and electric vehicles

“We believe that the new commodity upswing, and in particular oil upcycle, has started.”

“The tide on yields and inflation is turning.”

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