Commodity prices have soared in recent months, driven by a recovery in demand and geopolitical factors. Although the Fed tightens monetary policy to keep inflation down, top investment banks remain bullish on commodities in the future.

Specifically, the s & p Goldman Sachs Group commodity total income index has risen more than 30 per cent so far this year. JPMorgan Chase & Co strategist said that commodity prices are likely to rise further sharply from here.

Strategists led by Nikolaos Panigirtzoglou say that while the allocation of commodities appears to be higher than the historical average, they have not yet been overallocated. 'This shows that raw materials still have room to rise, 'they said.

Commodity prices surged to record levels last month as geography disrupted markets and pushed up prices for everything from oil to wheat. This has further pushed up global inflation, forcing the Fed to adopt a more hawkish monetary policy and prompting investors to consider realigning equity between stocks, bonds and raw materials in their portfolios.

JPMorgan Chase & Co strategist wrote in a report in April: "given the current higher demand for inflation hedging, it is conceivable that long-term commodity allocation will eventually exceed 1 per cent of global financial assets, exceeding previous highs. Other things being equal, they say, "this means that commodities still have 30 to 40 per cent room to rise from here".

Among the top investment banks, Goldman Sachs Group has also been bullish on raw materials, in part because they act as a hedge against inflation. Goldman Sachs Group warned in a report on April 7 that the global copper market was being hit.

In addition, while the Fed is embarking on a monetary tightening cycle, Societe Generale advises investors to maximize their exposure to commodities, including gold.The bank says the maximum allocation of gold in its multiple portfolios is 5 per cent, accounting for half of its commodity exposure. The comments come as gold prices continue to consolidate between $1900 and $1950 an ounce, although analysts at Societe Generale expect prices to break through the upward barrier within the next three months.

When it comes to commodity exposure, analysts at Societe Generale say they tend to switch from the energy sector to metals such as copper. The bank is also optimistic about the future value of silver as an industrial metal."to protect the portfolio, buying oil is no longer a panacea, and if the Fed reacts too strongly to the inflationary pressures building up in the economy, they could push the economy into recession, causing oil prices to fall to $60 a barrel," analysts said. "

As it adjusts its multiple portfolios, the bank warned investors that risks in Europe and the US rose significantly as the global economy entered a new cycle. They are increasing their exposure to cash and US government bonds and reducing their exposure to equities.

Although the risks are rising, analysts do not expect a recession or stagflation. There are several sources of resilience: strong growth, large excess household savings, strong corporate balance sheets, and so on. But a key risk is a shock to confidence. "

Soci é t é G é n é rale said geography remained an uncertainty in the global economy and would further push up commodity inflation. The bank also pointed out that geographical factors contributed to a long-term shift in the global outlook, which could affect the portfolio.

Specifically, although energy prices have been rising recently, analysts sayGeographical factors may drive the rapid transformation of global green energy.

We believe that the energy transformation must be accelerated, as it will also help to achieve strategic autonomy in the energy sector, so there should be new progress in investment in other long-term themes such as green trading and hydrogen.