El Niño Could Set a Record, Pressuring Prices
Corporate
US meteorologists see a probability above 90% that the current El Niño becomes very strong, and 69% that it becomes historic. These events bring extreme weather across the globe, potentially disrupting a range of agricultural and industrial commodities and feeding through to inflation.
The risk could be compounded by the collapse in transits through the Strait of Hormuz, which is already disrupting critical production inputs. In such an environment, we believe enhancing portfolio diversification is key, particularly through alternative investments.
Discover our views here.
