Goldman Sachs published a note titled “Buy commodities now, worry about the recession later”, where it urges investors to invest in commodities, viewing them as the best asset class to hold during a late-cycle phase where demand remains above supply. Meanwhile, the investment bank believes equities could suffer given high inflation and the Fed’s likely surprises on the hikes.

Goldman Sachs sees a relatively low risk of a recession outside Europe in the next 12 months, noting that with oil the commodity of last resort in an era of severe energy shortages, the pullback gives an attractive entry point for long-term investments.