Jeffrey Currie, former global head of commodities research at Goldman Sachs Group Inc. and now senior advisor at private equity giant Carlyle Group Inc. used a 10-part X thread on Friday under the handle @CommodMkt to highlight that capital chasing the AI trade has ignored the physical assets AI requires to run.
He calls it “the revenge of the old economy in real time.”
The Munificent 7 Versus The Magnificent 7
Currie opened the thread with a performance table tied to the October 2020 supercycle call he made while at Goldman. By his numbers, the QCI Commodity Total Return Index is up 217% since then.
The S&P GSCI Total Return is up 205%. Gold, as tracked by the iShares Gold Trust (NYSE:GLD) is up 140%. The Nasdaq 100, tracked by the Invesco QQQ Trust (NASDAQ:QQQ), trails at 130%. The S&P 500 is up 85%.
The top three performers, he notes, are all commodities, and yet commodity hedge fund assets under management remain a rounding error inside global allocator portfolios.
“Welcome to the most asymmetric trade in modern financial history,” Currie opened.
Welcome to the most asymmetric trade in modern financial history.The thread below lays out why. The opportunity exists because capital has chased the AI trade while ignoring the physical assets AI requires to run, assets that have quietly become the best-performing ...
