Investors Flock to 'Super Cycles' Amidst Inflation and Geopolitical Tensions

The recent surge in oil prices due to geopolitical tensions has led some investors to consider 'super cycles', long-term trades that seek to profit from growing resource demands amidst persistent inflation.

According to Tyler Rosenlicht, head of natural resource equities at Cohen & Steers, the traditional 60-40 portfolio design is no longer effective in a world where bonds have failed to smooth out market bumps.

Rosenlicht manages the Cohen & Steers Natural Resources Active ETF (CSNR), which has $123 million in assets and charges an expense ratio of 0.50% annually. The fund is up 22% year-to-date, according to Morningstar data.

Broad-based energy sector ETFs such as XOP are up roughly 40% this year, while ETFs betting directly on the price of oil, like USO, have seen even greater gains.