BC BCOM Bloomberg Commodity Index Loading... : Bullish and Bearish Analyst Opinions

Commodities are in a broad-based rally with clear tailwinds from AI data center buildouts, deglobalization, rising freight and input costs, extreme weather supply disruptions and inflation-hedging inflows. BCOM is up about 27% this year, and the move is not driven by just one commodity; historically, after gold's all-time highs, broad commodity exposure like BCOM rose 5% over the next quarter and 15% over the next year.

The world is in a commodity supercycle that started in October 2020. Supply-side underinvestment in old economy production capacity ('revenge of the old economy') constrains supply. Demand is driven by deglobalization (defense spending, reshoring, buildout of redundant supply chains), electrification (renewables, nuclear, data centers), and debasement (fiat currency debasement through debt and redistribution). Commodity indices have been trending higher and are set to continue as these forces intensify.