Products presented at Wien, Zidle 10 Surprises of 2022 – Product Commentary

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By Colin Kellaher

Byron Wien, vice president, and Joe Zidle, chief investment strategist, Blackstone Inc.’s private wealth management solutions group released their annual list of 10 surprises on Monday.

Mr Wien, who started the list in 1986, defines a surprise as an event that the average investor would attribute a one in three chance of happening, but he believes it has a greater than 50% chance.

This year’s list includes several surprises in the commodities markets.

– The price of gold rises by 20% to reach a record level. Despite strong growth in the United States, investors are seeking the perceived safety and inflation hedge of gold amid rising prices and volatility. Gold reclaims its title of paradise for newly created billionaires, even as cryptocurrencies continue to gain market share.

– While major oil-producing countries conclude that high oil prices are accelerating the implementation of alternative energy programs and allowing US shale producers to become profitable again, these countries cannot increase production enough to meet the demand. on demand. The price of West Texas Intermediate crude is confusing forward curves and analysts’ forecasts when it exceeds $ 100 a barrel.

– The nuclear alternative for the production of electricity enters the arena. Sufficient security measures have been developed to reduce fears about its dangers, and the viability of nuclear power is widely recognized. Major nuclear site approved for development in US Midwest Fusion technology is emerging as a possible future power source.

– In a step back from its green energy program, the United States finds it cannot buy enough lithium batteries to power electric vehicles scheduled for production. China controls the lithium market, as well as the markets for cobalt and nickel used in the manufacture of transmission rods, and chooses to reserve most of the supply of these products for home use.

Write to Colin Kellaher at [email protected]

(END) Dow Jones Newswires

01-03-22 1404ET


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