The Mother Of All Mean Reversions: Commodities Have Never Been This Cheap Versus Stocks
ZeroHedge·
- Major Wall Street institutions warn that physical scarcity across multiple commodity classes is signaling a potential hard-asset squeeze and an upcoming commodity upcycle.
- The ratio of the S&P GSCI to the S&P 500 is hovering near a 50-year low, even as prices for copper, tungsten, uranium, and agricultural goods surge due to accelerating demand and underinvestment.
- Market experts emphasize that a combination of electrification, the AI buildout, and geopolitical fragmentation are driving this shift while investors remain heavily concentrated in US equities.