UBS is urging investors to position for a commodity upcycle, driven by electrification, AI infrastructure, rising power demand, supply constraints, and years of underinvestment.
Gold, energy, and industrial metals remain particularly attractive, with geopolitical risks supporting energy while copper benefits from structural demand and looming supply deficits.
The broader commodity rally is already accelerating, with the Quantix Commodity Index at a record high and Jeff Currie warning that the era of abundant physical resources may be ending.
One day after veteran commodities strategist Jeff Currie told investors to "get long and buckle up" for the next leg of the commodities rally, UBS strategist Sagar Khandelwal issued a similarly bullish call, urging clients to "position for a commodity upcycle." Khandelwal stated that electrification, surging power demand, artificial-intelligence infrastructure spending, persistent supply constraints, and years of underinvestment are converging to create a perfect storm for a sustained upcycle in hard assets.
