Industrial metals are well on their way to being among the top performers of 2020, supported by red hot demand from China and global supply concerns.
As of today, the MSCI Industrial Metals Index—which tracks the price of copper, nickel, aluminum and more—was up 21.4% year-to-date, just below the index of precious metals, up 21.9%. The broader S&P GSCI, which measures metals as well as agricultural and energy-related commodities, was underwater by nearly 10%.
I believe the rally is only getting started, and we could see ever higher asset prices in 2021, for a couple of significant reasons.
Number one, President-elect Joe Biden plans to make infrastructure one of his top priorities soon after taking office next month. Proposals have the U.S. spending as much as $2 trillion not only to improve roads, bridges and seaports but also beef up the EV sector, add charging stations, convert school buses to zero emissions and more.
The link is here: https://www.advisorperspectives.com/commentaries/2020/12/11/still-plenty-of-gas-in-the-base-metal-rally-tank
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