2021 is finally here, and I’ll keep that note short and sweet. Markets appear to be bracing for another parabolic move higher. From an economic point of view, we should see growth continue to accelerate, inflation rise and the Fed remain accommodative. This combination should prove to be favorable for a wide range of commodities, allowing year-over-year growth in demand to outstrip supply.
At the time of writing, some of the most notable “year-to-date” performance numbers for raw materials are Lumber + 67%, Silver + 47%, Soy + 37%, palladium + 28%, copper + 25%, gold + 24%, Sugar + 15% and Platinum + 10%. The four worst performing are gasoline -17%, WTI crude oil -21%, Brent crude oil -22% and finally fuel oil -27%. Heating oil acts as a proxy for diesel fuel and bunker fuel, and with the global economy crashing into a crash, these products may perform best once a reopening takes place.
High conviction professions for 2021
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