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Wall Street analysts signal potential commodity supercycle
Financial institutions on Wall Street, including UBS, JPMorgan, Goldman Sachs, HSBC, and Barclays, are identifying potential physical deficits across various commodity market segments. Analysts suggest these shortages could drive rapid price increases and signal a broader crisis in hard assets.
Christopher LaFemina, head of global metals and mining research at Jefferies, noted that commodities are currently priced at historically low levels compared to US equities. He highlighted that the ratio between the S&P GSCI and the S&P 500 is approaching its lowest point in over five decades, a pattern previously seen before major commodity growth cycles following the dot-com bubble and the 1970s inflation shock.
Entities
Jefferies · S&P 500 · S&P GSCI · UBS · Wall Street
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] Commodities are historically cheap relative to US equities.
- [○ 1 SOURCE] The ratio between the S&P GSCI and S&P 500 is near its lowest level in over fifty years.
- [○ 1 SOURCE] Physical deficits are emerging in several commodity market segments.
- [○ 1 SOURCE] UBS strategist Sagar Khandelwal advised clients to position for an upcoming commodity growth cycle.