In accordance with Bpaynews, Bank of America (BofA) has identified commodities as a major contrarian trade for 2026, with energy leading the potential upcycle. The firm's Chief Investment Strategist, Michael Hartnett, argues that a shift in macroeconomic conditions—toward inflationary pressures and underinvestment in traditional energy—could drive capital away from tech and into hard assets. BofA forecasts a potential 60% rise in crude oil prices, pushing WTI toward $96 per barrel, which could impact FX, rates, and equities. Currencies like CAD, NOK, and AUD may benefit, while JPY and parts of the EUR bloc could face headwinds. Risks include global growth slowdowns, disinflation, and increased OPEC+ supply.
BofA Predicts Commodity Rally in 2026, Energy as Key Contrarian Trade
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