In a recent research note, BCA has initiated a long position in palladium due to its dual status as both a precious and industrial metal. While some investors may be hesitant to diversify their portfolios beyond US assets, BCA argues that this is a crucial step towards unlocking hidden value.

The report highlights the importance of considering FX-induced asset underperformance when evaluating global investment opportunities. For those invested solely in US assets, it may be difficult to accept the concept of diversifying into hard assets such as palladium. However, BCA believes that this is a necessary step towards achieving long-term financial success.

BCA’s analysis reveals that investors who have gorged on US assets over the past 15 years may be unaware of the potential benefits of diversifying into hard assets. By going long on palladium, investors can potentially mitigate against any risks associated with Trump’s policies or central bank actions.

The report also includes detailed analysis of the factors driving palladium’s value, including its use in the automotive industry and its status as a precious metal. BCA believes that these factors will continue to support palladium’s value in the long term, making it an attractive investment opportunity for those looking beyond US assets.

Overall, BCA’s research note highlights the importance of diversifying one’s portfolio beyond US assets and exploring opportunities in hard assets such as palladium. By taking a holistic approach to investing, investors can potentially unlock hidden value and achieve long-term financial success.