JPMorgan’s chief global markets strategist Marko Kolanovic advises investors to play commodities against recession risks. “This strikes me as a good entry point to catch up on commodities vs. stocks — amid a broad rally in risky assets, commodity prices with by far the highest risk of a recession and stand out as undervalued, undervalued and supported by compelling fundamentals and technicals,” he wrote in a Monday note. Kolanovic called natural gas his top choice in the commodity sector. Investors can look to the United States Natural Gas Fund LP ( UNG ) to gain exposure to the commodity; in 2023 it is about 48%. The strategist predicts that US natural gas prices will rise 25% in the next few months on expectations of a reversal in supply growth. His second favorite commodity investment choice is agricultural commodities. Invesco DB Agricultural Fund (DBA), up almost 11% in 2023, allows investors to play in this sector. The fund offers exposure to a range of agricultural futures, including sugar, soybeans and corn. The strategist also named oil as his third preferred area. The U.S. Brent Oil Fund LP ( BNO ), which is down less than 1% in 2023, is one way for investors to participate in this space. Investors purchasing commodity ETFs should be aware that funds that invest in futures linked to these assets may experience fluctuations in returns due to events such as contango and backwardation. Contango is a situation where futures that are further dated are priced higher than the spot price. Backwardation is what happens when the spot price is higher than the price of the upcoming futures contract. To be sure, Kolanovic maintains a neutral stance on base metals. “For base metals to fully engage in the 2H23 tactical rally, we still likely need another catalyst, either more aggressive Chinese stimulus or a strengthening of global manufacturing PMIs to cement stronger demand expectations,” Kolanovic said. —CNBC’s Michael Bloom contributed to this report.