Commodities, Real Assets and the Return of the Physical Economy

AllianceBernstein

Inigo Fraser Jenkins, Robertas Stancikas

Research

32 Pages

AllianceBernstein argues that commodities and industrial metals are becoming more strategically relevant as geopolitics, AI infrastructure, and resource nationalism revive the physical economy. The paper questions whether broad commodity indices are enough, pointing instead toward industrial metals, copper, mining equities, and Latin America.

Key Takeaways

Physical Economy Returns: AI capex is running at 8% of US GDP in real terms, reviving demand for energy, grids and raw materials.
Inflation Beta Helps: During expansions with inflation above 4%, industrial metals returned 26.9% real year over year, while bonds lost 1.6%.
Copper Gap Grows: Display 29 shows copper demand rising near 43 MMT by 2040, while mined and recycled supply remains around 32 MMT.
VIEW FULL REPORT
  • Editor's Picks

Join our newsletter to have all of this content + Exclusive Newsletter Bonus Content delivered to your inbox every week

Related Content

Alternative Assets
Beyond Bitcoin – The Manager Perspective: Why Digital Asset Benchmarking Is Entering a New Era
Jun 2026
Portfolio Management
Do Podcasts Move the Stock Market?
Jun 2026
Portfolio Management
The Faucet and the Well: Cash Flow With a Lower Tax Bill
Jun 2026

The information contained in this communication is of a general nature for informational purposes only, and does not constitute financial, investment, tax or legal advice. The information contained within this communication reflects the opinions of those referenced herein, and do not reflect the opinions of The Idea Farm, L.P. and its affiliates. Such opinions expressed herein are as of the date of production and are subject to change at any time without notice due to various factors, including changing market conditions or tax laws. Where data or information prepared by third parties is presented, no representation, warranty, or undertaking, expressed or implied, is given to the accuracy or completeness of such information by The Idea Farm, L.P. or any other person. While such sources are believed to be reliable, The Idea Farm, L.P. does not assume any responsibility for the accuracy or completeness of such information and does not undertake any obligation to update the information contained herein as of any future date. Any links to third party websites are offered only for use at your own discretion. The Idea Farm L.P., and its affiliates, are separate and unaffiliated from any third parties listed herein and are not responsible for their products, services, policies or the content of their website. All investments are subject to varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy or product referenced directly or indirectly in this communication will be profitable, perform equally to any corresponding indicated historical performance level(s), or be suitable for your portfolio. Past performance is not an indicator of future results.

Scroll to Top