Whilst US exceptionalism and sticky inflation may delay Fed easing into mid-year (and limit its scope), Ehsan Khoman, Head of Research – Commodities, ESG and Emerging Markets (EMEA), believes that the current set up is increasingly reminiscent of the soft landing Fed easing cycle of 1995 – a period when commodities surged more than 20% within the first nine months.
Yet not all commodities outperform and Ehsan breaks down which sub-commodities are best positioned to experience the strongest gains as the Fed eventually cuts rates.
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