- Commodity prices have soared, and inflation has hit levels not seen since the early 1980s.
- Due to long-term supply/demand dynamics in commodity markets, we may have to get used to high prices in the years to come.
- Resource equities trade at deeply discounted levels and offer investors both a chance to benefit from high commodity prices and to protect their portfolios from inflation.
- While there are always risks in the resources sector, we believe investors are likely to be rewarded with a compelling mix of strong returns, inflation protection, and diversification.
For further details see:
GMO 1Q 2022 Quarterly Letter