Goldman’s Currie: Commodities in Structural Bull Market

The video discusses the current trends in the commodity market, highlighting a structural bull market driven by underinvestment in supply, policy-driven demand shifts, and a weak dollar. It emphasizes the importance of investing in commodities as a hedge against inflation and contrasts this with financial assets. The discussion reaffirms the presence of a commodity bull market, supported by indicators like grain prices and rising global liquidity.

What are the key factors driving the structural bull market in commodities?

• Decreased demand and strong dollar

• Underinvestment in supply, policy-driven demand, and weak dollar

• Increased investment in supply and strong dollar

• High returns from oil companies and strong dollar

Why are major oil companies not fully participating in the current supply perspective?

• They are focusing on renewable energy sources

• They have reduced activities due to ESG concerns and low returns

• They are facing legal challenges

• They are investing heavily in new oil fields

What distinguishes commodities from financial assets according to the discussion?

• Commodities are future assets, while financial assets are spot assets

• Commodities are spot assets, while financial assets anticipate the future

• Both are spot assets

• Both anticipate the future

What are some signs of a structural bull market in commodities mentioned in the final section?

• Stable dollar and low metal prices

• Decreasing global liquidity and high grain prices

• Weak dollar and rising global liquidity

• Strong dollar and low grain prices

What role does global liquidity play in the commodity bull market?

• It stabilizes commodity prices

• It decreases the demand for commodities

• It acts as a barrier to commodity investment

• It fuels the reflationary feedback loop