Peter Boockvar on Oil, Non-Dollar Assets, and Consumer Staples in 2026

Market Performance and Diversification in 2025

• 📈 The major indexes concluded 2025 with their third consecutive year of double-digit gains.
• 💡 This year broadened investment opportunities beyond the seven dominant stocks of 2024, with significant performance in global markets.
• 🇪🇸 The Spanish stock market rose over 50% and the Italian stock market over 40% in dollar terms.
• 🌟 Precious metals, including gold, silver, platinum, and palladium, had a strong year, with gold up 60%.

Dollar Weakness and Emerging Markets

• 🇨🇳 The Chinese Yuan reaching a multi-year high, with authorities appearing more tolerant of its appreciation, suggests continued dollar weakness into the next year.
• 🌏 This trend can lift other Asian currencies and put pressure on the US dollar, making non-dollar assets attractive.
• 🏦 Peter Boockvar is particularly bullish on local currency emerging market bonds, expecting them to benefit from good yields and further dollar depreciation.

Compelling Commodities and Equities

• 🛢️ Oil is identified as the most compelling and cheapest asset globally, trading below $60 per barrel (WTI).
• 📉 Despite widespread bearish sentiment regarding oil supply and demand, Boockvar anticipates a reversal, with potentially falling US supply in 2026 and good demand.
• 🛒 Consumer staples are also highlighted as cheap, trading at low valuations with generous dividends, offering equity-like upside with bond-like income.

Catalysts for Consumer Staples

• 📉 Consumer staples have faced challenges with declining margins and loss of pricing power due to rising costs.
• 🛠️ However, many companies are right-sizing their businesses, divesting non-core assets, and focusing on creating better, healthier products to broaden their appeal.