JP Morgan Chase: Be Ready for a 40% Commodities Rally

Commodities could soar by as much as 40% if investors increase their investments in raw materials as an inflation hedge, according to JPMorgan Chase & Co.

grains, oilseeds
grains, oilseeds
(AgWeb)

Commodities could soar by as much as 40% if investors increase their investments in raw materials as an inflation hedge, according to JPMorgan Chase & Co. The bank advised there is an elevated need for inflation hedges. That means investors could distribute more than 1% of the total financial assets globally into longer-term commodity allocations. As a result, that “would imply another 30% to 40% upside for commodities from here.” The bank joins Goldman Sachs Group Inc., which has been bullish on raw materials as an inflation hedge. However, Goldman Sachs warned a global copper shock was underway.

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