Commodities: A strategic shield against new-regime risks

This report, authored by Daniel Stanley, CFA, of BMO Global Asset Management, evaluates the renewed strategic role of commodities amid shifting macroeconomic conditions

• Persistent inflation, geopolitical fragmentation, and climate volatility signal a structural regime shift favoring real assets.

• Broad commodity exposure offers low equity correlation, portfolio diversification, and resilience during supply shocks.

• Slow-to-adjust supply dynamics create asymmetric upside during geopolitical, trade, or climate disruptions.

How might a diversified commodity allocation enhance portfolio resilience and long-term returns in this evolving macro environment?