The red-hot commodity market is being underappreciated in the long term by investors still obsessed with stocks, JPMorgan says

The red-hot commodity market is being underappreciated in the long term by investors still obsessed with stocks, JPMorgan says

Commodity prices have been surging in recent months as pent-up demand from consumers amid a reopened economy, combined with supply chain imbalances, created a perfect storm. With inflation on the rise, investors should look to increase their commodity exposure as a hedge, according to a Wednesday note from JPMorgan. Lumber as demand for housing and home renovations soar and Canada restricts the supply of timber from its forests. Oil prices have been on the move higher as demand for fuel jumps and a . And copper prices have more than doubled thanks to in electric vehicles and the supply chain failing to keep up. This dynamic, in combination with easy year-over-year comparables, led the consumer prices index representing its strongest reading in 13-years. Despite the surge in inflation and the recent rise in commodities, JPMorgan found that investor allocation to the commodity ex-gold space stands at just 0.6%. That's below its post-2009 average, and well-below the near-1% levels it stood at from 2010 to 2013. At the same time, investors can't seem to get enough of stocks, with equities allocations surging past its post-2008 average in recent months, according to JPMorgan. "Investors are currently underweight commodities in global portfolios," the