by Yasin Ebrahim
Investing.com
Investing.com — Now is the time to lean into commodities, particularly energy, to hedge the risk that a faster pace inflation may return, driven by economic growth that is running above trend, JPMorgan said.
“Stay overweight commodities as protection to inflation risks: We are not out of the woods yet on inflation,” analysts at JPMorgan said in a recent note.
Gold has been the standout performer in the commodity playground recently, but JPMorgan throws shade on the yellow metal, saying its recent melt-up leaves it vulnerable to a correction.
Energy is favored as there is a “high chance that oil prices surpass $100 over the coming months,” the analysts said.
“Within commodities we believe energy is better hedge than gold,” they added, adding adding that a mean reversion looks high at the moment [for gold].”