BofA names raw materials as the "hot" investment of 2026

Bank of America analysts believe that in 2026, commodities will become the most demanded industry on the market. According to experts, high returns will be provided by inflation rates and the economic policy of U.S. President Donald Trump, writes Business Insider.

Already this year, Bank of America points out, the sector has posted strong returns as investors see it as a key part of the AI market.

Analysts at Bank of America expect commodities, which often lag riskier assets like stocks and cryptocurrencies, could become a major hot bet in 2026. Michael Hartnett's team suggests that U.S. President Donald Trump's administration's economic policies to "ramp up" the economy, "combining political populism and rising inflation," will eventually lead to a boom in commodity prices, MarketWhatch reports.

"We believe long commodity positions will be the best hot bet for 2026, and investing in undervalued oil and energy will be the most attractive counter-trend idea," the strategists say (quoted in Business Insider).

As early as 2025, the commodities sector looks set to show huge returns, notes Business Insider. This is primarily due to the fact that metals and energy resources have become a key investment target amid the AI-based data center boom. For example, the Vanguard Commodity Strategy Fund, which tracks commodity investments, has added 17% YTD, slightly outperforming the S&P 500 (+16% YTD). The industrial sector of the S&P 500 has also added 17% since January.

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