JPMorgan analysts told investors they believe prices of commodities such as oil, agricultural products, and metals, including gold, could see another 30% to 40% upside from the current levels.
- The upside is expected as the space remains under-allocated by investors and is far from being overweight in portfolios. The space has continued to see increasing allocations over the past year.
- The implied commodity allocation stands at 0.72%, still higher than the average recorded after the crash of the Lehman Brothers, but remains lower than the highs recorded in 2008 and 2011.
- Analysts believe the 30% to 40% upside could come should the allocation increase to above 1% of total financial assets across the globe, overtaking the previous records seen in 2008 or 2011.
OIL is down 0.63%, and USO is down 0.40%.
Source: Business Insider