Commodity Bull Goldman Says ‘We Were Wrong’ But Sticks to View
- Bank says declines probably driven by unprecedented destocking
- Bloomberg raw materials gauge hits lowest since 2021 this week
Commodities have tumbled by almost 10% this year.
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Commodity cheerleader Goldman Sachs Group Inc. said its forecasts for major rises in raw materials this year hadn’t panned out well so far, but coupled that assessment with another call for a major rally.
“Bulls, like ourselves, find comfort in the fact that end-use demand across the commodity complex has not shown recessionary signs and investment in supply remains elusive,” analysts including Jeffrey Currie said in a note. “But this misses the point that we were wrong on price expectations.”