Investors should consider commodities due to global economic growth, particularly driven by China. Commodities like copper, gold, and energy are performing well, supported by demand and government spending. VanEck CEO Jan van Eck emphasizes the positive outlook for commodities, as evidenced by a recent increase in China's manufacturing activity and the momentum of copper prices.
Oil prices surged in early 2023, driven by high demand and supply cuts by OPEC. OPEC is unlikely to change these cuts anytime soon, keeping supply low. Additionally, consolidation in major oil-producing areas suggests more controlled production, further supporting prices. Investors are keeping an eye on the Energy Select Sector Fund (XLE), which tracks oil prices and has seen strong performance recently.
Investment experts predict raw materials could increase in value this year, but there are concerns about inflation and financial stability. While analysts are bullish on stocks, they also worry about market stability and consider the bond market to be in the middle of its cycle. The Fed's unclear stance on inflation and unemployment is adding to uncertainty.
