Buy base metals, particularly copper

Citi likes copper for a few reasons:
1. The global manufacturing PMI is turning up and copper “performs well” when this happens
2. Copper tends to rise in line with equity market bubbles, like the one we’re in now, as the wealth effect from stocks tends to lift copper consumption
3. The long term energy transition is creating structural shift towards increased copper consumption
As a result of the above, Citi’s commodity strategists believe that “everything below 9k is cheap for copper”. FYI, copper is currently trading around US$8,700/t.