“Both limited supply and supply chain issues are driving up the price of available commodities regardless of economic growth,” he said. “This provides a favorable economic backdrop for both the commodity, and energy markets in particular, going into 2022.”
With weak confidence and continued uncertainty, investors and their advisors are looking to strengthen portfolios with defensive assets, but taking into account the overall trend, sentiment is down for these assets as well.
Precious metals – especially gold and silver – remained a good store of value in the last quarter of 2021. However, advisors have led a more bearish outlook.
“It is interesting to note that despite similar inflationary concerns and strong returns over the past quarter from gold mining stocks, the bullish sentiment on the precious metals has actually subsided,” Noble commented. “The advent of cryptocurrencies may replace the glut of gold as an alternative asset class during periods of monetary uncertainty.”
Fixed-income assets are affected by lower interest rates and both respondent groups are more bearish now.