SocGen Goes ‘Underweight’ on Commodities ‘in Danger Zone’
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Societe Generale SA’s global asset allocation team went “underweight” on commodities, saying the asset class is in the “danger zone.”
The team recommends that investors position for higher gold prices and lower oil prices, one of seven key calls made in the report distributed today by the Paris-based bank. The precious metal should benefit from risk aversion, central-bank purchases and negative real interest rates, the team wrote. Crude and copper may decline as economic growth slows and the dollar gains against the euro.