Why are geopolitical risks increasing commodity hoarding?

Geopolitical risks are driving hoarding across all commodity classes, prompting a market rotation towards asset-heavy industries.

Are oil and metals markets underinvested?

Yes, oil and metals markets are considered substantially underinvested, indicating significant potential for price increases.

What is driving the shift from the 'new economy' to the 'old economy'?

A rotation is occurring from the tech-led 'new economy' towards the asset-heavy industries of the 'old economy' due to rising geopolitical risks.

Home / Business and Economy / Commodities Surge: Old Economy Reclaims Throne

Commodities Surge: Old Economy Reclaims Throne

10 Feb

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Summary

Geopolitical risks are driving commodity hoarding and investment shifts.
Oil and metals markets are significantly underinvested with upside.
A rotation is occurring from tech stocks to asset-heavy industries.

Commodities Surge: Old Economy Reclaims Throne

Geopolitical tensions are fueling widespread hoarding across commodity classes, prompting a notable market rotation. This shift sees investment moving away from the technology sector towards traditional, asset-heavy industries.

Oil and metals are identified as significantly underinvested markets with substantial upside potential. Concerns about oil gluts are being challenged, with prices rising despite prior forecasts of oversupply. Factors supporting prices include geopolitical tensions and logistical disruptions.

This environment draws parallels to past market surges following economic instability. The trend suggests a lasting shift as investors prioritize tangible assets amidst global uncertainty.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.