JPMorgan estimating dramatic price increases for nearly all commodities as war, supply chain crisis continue
By jdheyes // 2022-05-05
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As prices for everything continue to rise, JPMorgan Chase is warning that the cost of commodities is set to skyrocket as well. According to The Epoch Times, a note from the financial giant published on April 7 said that the cost of raw materials rose dramatically in March and will continue on that trajectory for the foreseeable future. In fact, the note said that prices could rise as much as 40 percent, thanks in large part to enduring Western sanctions on Russia -- a major supplier of raw materials -- following its invasion of Ukraine. The outlet continued: Russia is a main supplier for up to 10 percent of global energy production and about 20 percent of global wheat production. The commodities affected include oil, which is already up 33 percent from the same month the previous year, while natural gas has gone up by 65 percent since the invasion roiled the markets. Metals excluding gold, such as copper, are up by 7 percent from 2021, while wheat has surged upward by 33 percent.  The bank also announced it was continuing to review the long-term positions of commodities by global investors while comparing it to cash, stocks and bonds allocations. “In dollar terms, the total open interest of commodity futures ex gold stands at around $1.4 trillion, which, although high by historical standards, looks much lower compared to the stock of equities, bonds, and cash in the world,” said the bank's note. JPMorgan added "that while investors’ implied commodity allocation of 0.72 percent is higher than the average seen after the Lehman Brothers crash, it is still well below the record highs of 2008 and 2011," The Epoch Times reported. “In the current juncture, where the need for inflation hedges is more elevated, it is conceivable to see longer-term commodity allocations eventually rising above 1 percent of total financial assets globally, surpassing the previous highs seen during 2008 or 2011,” said the note. Commodities falling in those categories are liable to see spikes of 30 to 40 percent price-wise from current levels, the bank's economists forecast. JPMorgan also noted that while investors have boosted their allocation to commodities over the past 12 months above historic averages, there is still a lot of room to overweigh them in their portfolios: The current numbers suggest further scope for gains in raw materials, according to the note, as commodities are far into record territory and that there is “room for further increases in investors’ allocation to commodities,” in a period of rising inflation, according to the bank. The spikes in commodities prices come as record-high "Bidenflation" hits the U.S. According to the Labor Department's Bureau of Labor Statistics, inflation rose by an eye-watering 8.4 percent in March, a four-decade high amid the worst presidency in modern history. Also, the department's Consumer Price Index showed that between February and March, it increased 1.2 percent, which was the highest month-over-month jump since 2005. "Analysts project the rate of inflation over 12 months ending March would 8.4% – the fastest year-over-year inflation since December 1981. The March rate also surpassed the year-over-year increase of 7.9% in February, which set a 40-year high," Just the News reported, citing the Labor Department's data. The White House was expecting the terrible news, and on Monday once again preemptively blamed Russian President Vladimir Putin's invasion of Ukraine, particularly for the spike in oil and gas prices. But the reality is, oil and gas prices had risen dramatically the entire year of Biden's presidency before Russia invaded in late February, thanks to his 'war on oil' policies. Also, the vast majority of Americans don't believe Biden's 'Russia is to blame' lie. CNN anchor Abby Phillip "pointed out that the White House had even attempted to label the rise in gas prices as the #PutinPriceHike — even bringing in TikTok influencers to help them spread that particular message — a move that did not seem to take hold in the way that the Biden administration might have liked," The Daily Wire added. Biden's presidency has been a disaster but that's all according to the deep state plan, obviously, seeing as how he was installed by our shadow rulers. Sources include: JustTheNews.com DailyWire.com TheEpochTimes.com
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