CQG News | Q4 Report - Commodities
Summary
The raw material markets continued to make a comeback in the final quarter of 2020 after the global pandemic caused a deflationary spiral taking the prices of most assets to lows in March and April. Quantitative easing, low interest rates, a falling dollar, and the prospects for rising inflationary pressures are a potent bullish cocktail for commodity prices as we head into 2021. Myriad complex factors on a macro and microeconomic basis dictate the price direction for the commodities market over the coming three months and beyond. If the price action after 2008 repeats, we could see a bull market in the raw materials asset class in the coming months and years. Even though we have seen substantial rallies in raw material prices since the March and April 2020 lows, it still may be early days for the bullish trends.
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