Will commodities outperform every other asset class again in 2024? [Video]
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There’s no question, 2023 will go down in history as one of the most profitable years ever for Commodity traders, however 2024 is projected to be even bigger
Commodities have now been the best performing asset class in 2021, 2022 and 2023 – marking a third consecutive year that has seen a total of 27 commodities ranging from the metals, energies to agriculture tallying up astronomical double to triple digit gains – outperforming every other asset class out there!
The great news is that trend is here to stay and set to continue throughout 2024.
According Goldman Sachs, the macroeconomic backdrop for Commodities in 2024 is looking more bullish than ever before, indicating that we could be on the verge of another blockbuster year ahead.
In a note to clients, the bank's analysts wrote "the setup for Commodities in 2024 is more bullish than it has ever been since they first highlighted the Supercycle in late 2020”. The Wall Street bank concluded by reconfirming their view that “we're still only at the first inning of a multi-year, potentially decade-long Commodities Supercycle”.
And their certainty not alone.
We are starting to see more and more of the world's most powerful Wall Street banks releasing their 2024 forecasts – with “extremely bullish” calls for Commodity prices to hit fresh record highs in the year ahead fuelled by multitude of factors including; a peak in the U.S dollar, escalating geopolitical risks with two major wars currently ongoing in Europe and the Middle East and National Elections taking place in over 50% of the global economy.
These include the United States, which will probably have one of the most bitterly fought contests in recent history. The UK where economic malaise will likely polarize politics and the European Union, where the economy is currently walking a thin line between stagnation and recession.
Major National Elections are some of the biggest money-making events in the economic calendar, which only come around once every 4 years. These have the potential to throw up massive surprises that can destabilize market sentiment, while in return significantly bolster appetite for safe-haven assets like Gold.
Elsewhere, the global push towards Green Energy and Carbon Neutral Policies, will almost certainly play a critical role in supercharging demand for the world’s most highly essential Commodities and Rare Earth metals.
And last but definitely not least – the long-awaited “pivot” away from aggressive interest rate hikes to bigger-than-expected rate cuts in 2024 could unleash the mother of all tailwinds for Commodity prices ahead.
Whichever way you look at it, one thing is clear. All of these macro and geopolitical events currently unfolding are guaranteed to be a license to print money and drive market sentiment throughout 2024 – which traders will not want to miss out on!
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:
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