Part 13/19:
McDonald sees a significant migration of capital from financial assets into hard assets—such as energy companies, copper producers, and resource-based stocks. The underlying logic is straightforward: in a sustained inflationary environment fueled by geopolitical conflicts, infrastructure rebuilding, and resource scarcity, hard assets are best positioned to preserve value.
He cites the mismatch between current valuations and the actual supply constraints, especially for critical materials like copper, which is vital for infrastructure, energy, and technology. Political frictions in resource-rich countries threaten to hamper supply, further exacerbating shortages and driving commodity prices higher over the next decade.