| The latest commodity advice from Goldman Sachs suggests the current sell-off may be overdone. Here are the key points from Monday’s note: Shifting to near-term overweight as commodity sell-off overdone: Commodity markets declined sharply in February along with emerging market (EM) equities due to renewed concerns over China, which we believe is overdone.
Although our price targets other than gold remain unchanged, this pull back has pushed our near-term return forecast from 2.0% to 6.0%, making commodities the asset class within the ECS coverage universe with the most robust near-term outlook. However, our 12-month neutral recommendation remains unchanged as our returns forecast is still a more subdued 3.0%, as we continue to remain structurally neutral on long-dated oil and commodity prices due to the structural supply-side response to persistently high prices...............................................Full Article: Source |