We anticipate that raw material prices will remain elevated throughout 2022, as the structural bull market in commodities is supported by limited spare capacity and supply-demand imbalances that are proving difficult to alleviate. This momentum has carried over to the global natural resource equities that focus on these three commodity sectors. Though many natural resource companies faced substantial pre-pandemic challenges, the recent surge in commodities prices, along with low relative valuations, continue to make them attractive to investors.
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