40 percent rally expectation from JPMorgan in commodities

In the rising inflation environment, commodity prices are expected to increase by 40 percent as investors increase their raw material positions.

In a note, JPMorgan strategists led by Nikolas Panigirtzoglou stated that the commodity assets in the portfolios are above the historical averages, adding that "This indicates a further rise in raw materials."

After Russia's invasion of Ukraine, commodity prices, from oil to wheat, broke record after record last month. This rise also triggered the already high global inflation, and the Fed increased interest rates for the first time in 3 years in March to fight inflation.

Strategists stated that commodities used as a hedge against inflation in the current conditions may take place in portfolios in the long term and said, "The commodity may constitute more than 1 percent of total global financial assets and thus rise above the previously seen peaks. This is 30 percent from the current levels of commodities. "It means that it can rise around -40," he said.