The Bullish Case for Commodities in 2024

TLDRThe setup for commodities in 2024 is favorable due to low inventories, exhausted spare capacity, and record demand. The global synchronized disinflation was supply-driven, and monetary and fiscal policies can't create supply in one year. The focus should be on Venezuela, Iran, and Russia for oil production. Copper is a positive story in metals. The transition to green policies may cause volatility in commodity markets. Owning both green and brown commodities is advised, along with investing in suppliers to companies focused on the energy transition.

Key insights

📈The setup for commodities in 2024 is favorable, with low inventories and exhausted spare capacity.

🛢️Venezuela, Iran, and Russia are important for oil production.

🌍The transition to green policies may cause volatility in commodity markets.

⚖️It is advised to own both green and brown commodities.

📊Investing in suppliers to companies focused on the energy transition can be profitable.

Q&A

What factors make the setup for commodities in 2024 favorable?

—Low inventories, exhausted spare capacity, and record demand.

Which countries are important for oil production?

—Venezuela, Iran, and Russia.

What may cause volatility in commodity markets?

—The transition to green policies.

Is it recommended to own both green and brown commodities?

—Yes, it is advised to own both.

What type of companies should one invest in for the energy transition?

—Suppliers to companies focused on the energy transition.

Timestamped Summary

00:00The setup for commodities in 2024 is favorable due to low inventories, exhausted spare capacity, and record demand.

04:10Venezuela, Iran, and Russia are important for oil production.

06:30The transition to green policies may cause volatility in commodity markets.

07:53It is advised to own both green and brown commodities.

08:23Investing in suppliers to companies focused on the energy transition can be profitable.

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