Group 1 - Bank of America predicts commodities will be the hottest investment choice in 2026, driven by economic "tailwinds" that will enhance performance [1] - The "run it hot" strategy suggests that tax cuts and interest rate reductions will stimulate economic growth, supporting strong performance in commodities despite some negative data [1][2] - Commodities are expected to yield significant returns in 2025, particularly metals and energy, which are key investment areas in the AI data center boom [2] Group 2 - Industrial stocks focused on commodities have risen 17% since January, while utility and energy stocks have increased by 15% and 7% respectively this year [4] - Factors supporting the sustained momentum in commodities include Trump's economic policies, which are expected to further stimulate growth [6] - The appeal of commodities has grown due to excessive fiscal spending, making them outperform traditional safe-haven assets like bonds [6] - Globalization is fracturing, with geopolitical conflicts and supply chain issues potentially boosting commodity demand as they are often transported and used as raw materials [6] - Higher inflation expectations may lead to rising prices for commodities like gold, which has increased by 60% this year, marking its best performance since the 1970s [6]