(Kitco News) Signs of inflation are already here, and so is the new commodity supercycle, JPMorgan said in a note.
“We believe that the new commodity upswing, and in particular oil upcycle, has started,” the JPMorgan analysts said. “The tide on yields and inflation is turning.”
The new supercycle will be driven by the post-pandemic recovery, inflation, accommodative monetary and fiscal policies, a deteriorating U.S. dollar, and a global fight against climate change, the note said.
Metal prices are already rising to multi-year highs, agricultural prices are surging, and oil is now trading above $50 a barrel, said JPMorgan, adding that these are all signs of a commodity supercycle that can last for years.
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