Remember commodities? Those boring old things like oil, gold, and copper that your dad probably mentioned once during a dinner conversation about “real assets”? Well, Bank of America just dropped a hot take that might make you actually care about them.
The banking giant is calling commodities the best “run-it-hot” trade for 2026. And before you ask, “run-it-hot” isn’t some new TikTok dance—it’s BofA’s way of saying the economy is about to get spicy with strong growth, stimulus money flying around, and inflation potentially making a comeback tour nobody asked for.
Here’s the thing: while everyone’s been obsessing over AI stocks and crypto, commodities have been quietly having their glow-up. The Vanguard Commodity Strategy Fund is up 17% this year, actually beating the S&P 500. Plot twist!
So why are commodities suddenly the cool kids?
First up: Trump 2.0. His economic policies are expected to juice up growth, and when the economy runs hot, commodities tend to party along. It’s like how your energy bill goes up when everyone’s blasting their AC in summer—more demand, higher prices.
Then there’s the bond situation. Remember when bonds were the “safe” investment your financial advisor always pushed? Well, with all the government spending lately, commodities are starting to look more appealing than bonds as a place to park your money. It’s like choosing between a reliable but boring friend and someone who’s actually fun at parties.
The world is also getting weird with trade. Globalization is having its messy breakup moment thanks to geopolitical drama, supply chain chaos, and tariffs flying around like confetti. When trade gets complicated, commodities—which literally get shipped everywhere—tend to benefit.
And let’s talk about inflation. If prices start climbing again (thanks, economic policies!), commodities like gold become the financial equivalent of a security blanket. Gold is already up 60% this year, having its best performance since the 1970s. That’s some serious vintage vibes.
The AI boom is also secretly a commodities story. All those data centers powering ChatGPT and friends? They need massive amounts of copper, steel, and energy. It’s like how the gold rush wasn’t just about gold—it was about selling shovels to the miners.
BofA’s strategists are particularly bullish on oil and energy, calling it the best “contrarian trade” because everyone’s been sleeping on it. Their prediction? “Soon all the commodity charts will look like gold.” That’s finance speak for “everything’s about to moon.”
Look, commodities aren’t as flashy as buying the latest meme stock or trying to time the crypto market. But sometimes the boring trade is the smart trade. While everyone else is chasing the next big thing, maybe the next big thing has been sitting right there in the “unsexy” corner of the market all along.
Just don’t blame us when you start getting excited about copper futures at dinner parties.