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Macro EconomyUpdated•Originally published 6 April 2026•Updated 8 April 2026•
1 min read

Commodities Lead Q1 2026 Gains Despite Broad Asset Pullback in March

Key Facts

1Commodities lead all asset classes with a year-to-date return of +39.84% through the end of Q1 2026.
2March 2026 saw a broad pullback across most asset classes following strong gains in January and February.
3Commodities recorded gains of +10.49% in January and +1.88% in February before closing out the first quarter.

Global financial markets experienced a broad pullback in March 2026, yet commodities remained the standout performer for the first quarter with a 39.84% year-to-date return. Recent reports indicate that US stock indexes are significantly overvalued, prompting a more cautious outlook on future investment returns. Analysts are increasingly utilizing the P/E10 ratio as a critical valuation metric, especially given current inflation levels and rising bond yields. This cautious sentiment is further driven by the strong correlation between inflation and 10-year Treasury yields, which has placed significant pressure on equity valuations. While commodities showed resilience, the overvaluation of traditional stocks has led to a notable shift in asset allocation strategies. This update highlights how specific valuation metrics and macroeconomic pressures influenced market dynamics throughout Q1 2026.