BofA Highlights Commodities Bull Run for Modern 60/40 Portfolios

Friday, 30 August 2024, 11:09

BofA believes commodities are starting a bull run and should be considered the '40' in 60/40 portfolios. The bank's latest report points to a new commodity secular bull market emerging in the 2020s, driven by significant factors such as debt and demographics. Investors should take note of this pivotal shift in asset allocation.
Seeking Alpha
BofA Highlights Commodities Bull Run for Modern 60/40 Portfolios

Emerging Bull Market for Commodities

BofA announced that commodities are poised to start a bull run, asserting their vital role as the '40' component in traditional 60/40 investment portfolios.

Key Factors Driving the Bull Market

  • Debt levels reaching new heights are spurring interest in tangible assets.
  • Deficits are projected to continue influencing market dynamics.
  • Demographic shifts in spending patterns are expected to amplify demand for commodities.

These factors signal that investors should reconsider their asset allocation strategies, particularly in light of the forecasted commodity secular bull market.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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