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Overview
Copper prices continued their strong run breaking through the $10,000 mark to hit the highest levels in over a decade as supply disruptions in Chile and demand from China pushed prices higher recently. Longer term, new structural demand from electric vehicles, wind and solar instillation coupled with constrained supply as highlighted by relatively low exchange tracked copper stockpiles means prices are likely remain elevated for some time. Goldmans have a year end price forecast of $11,000 for copper whilst Citi expect the industrial metal to trade above $12,000 within the next 3-4 months.
Chart 12: Copper prices continue to surge
Source: Bloomberg
Shares in listed private equity (PE) firms have outperformed the broader market over the last twelve months as the S&P Listed Private Equity Index has gained 56% compared with 37% for the S&P 500. The world’s largest PE managers all achieved positive growth in assets under management coming out of the pandemic as investors continue to increase investments in private market. In a sign of strong performance for the PE managers, firms such as KKR, Blackstone and Carlyle all grew their performance based fee revenue as managers look to take advantage of high valuations across many sectors.
Chart 13: Private equity firms outperforming
Source: Bloomberg
Gold prices have gained 10% since their near term lows posted in March of this year as the US dollar continues to weaken and bond yields pull back from their highs posted mid March. On the back of this, investor sentiment toward the yellow metal has picked up as gold ETF flows turned positive for the first time this year in May. Goldman Sachs see prices gaining further from here with a $2,000 price target on gold.
Chart 14: Gold ETF flows turn positive
Source: Bloomberg
