Feb 23, 2021 09:20 PM (GMT+8) · EqualOcean
Xu Gao, assistant president and chief economist of BOC securities, said on February 23 that the core of seizing the investment opportunities brought by procyclicality is to focus on when the inflection point of global monetary policy will come. The reason for the rise in commodity prices lies in its limited supply and rising demand, combined with the extremely loose monetary policies of several major overseas central banks. Therefore, once the US inflation rises, the effect of the Federal Reserve's extremely loose monetary policy will weaken, which will have a greater impact on global commodity prices. Xu Gao believes that commodities are still in a bull market at present and will continue for a period of time. We should predict the inflection point of monetary policy through the trend of inflation.