Goldman Sachs Urges Investors to Buy Commodities Now – Expects Stocks to Suffer as Inflation Remains High – Economics Bitcoin News

Goldman Sachs Urges Investors to Buy Commodities Now – Expects Stocks to Suffer as Inflation Remains High – Economics Bitcoin News

Global investment bank Goldman Sachs urged investors to buy commodities now and worry about a recession later. The company’s analysts see commodities as “the best asset class to own during the late-cycle phase where demand remains above supply.” Meanwhile, “stocks could suffer as inflation remains elevated and the Fed is more likely to surprise on the hawkish side,” Goldman noted.

Goldman Sachs recommendation: Buy goods now

Global investment bank Goldman Sachs recommended that investors buy the commodity. In a note titled “Buy Commodities Now, Worry About Recession Later,” published Monday, Goldman wrote: “Our economists see the risk of a recession outside of Europe over the next 12 months as relatively low.” The company’s analysts, including Sabine Schels, Jeffrey Currie and Damien Courvalin, explained:

Given that oil is a commodity of last resort in an era of severe energy shortages, we believe that the withdrawal of the entire oil complex provides an attractive entry point for long-term investment.

In the US, Federal Reserve Chairman Jerome Powell said last week: “We are taking strong and swift steps to ease demand to better match supply and to keep inflationary expectations anchored. We will continue to do so until we are sure the job is done.”

Moreover, European Central Bank (ECB) board member Isabel Schnabel noted on Saturday that central banks around the world risk losing public confidence and must now act forcefully to fight inflation, even if it drags their economies into recession.

“From a cross-asset perspective, stocks could suffer as inflation remains elevated and the Fed is more likely to surprise on the hawkish side,” Goldman analysts further noted, elaborating:

Commodities, on the other hand, are the best asset class to own during the late cycle phase where demand remains above supply.

The late cycle phase typically involves rising inflationary pressures and an economy exceeding its peak economic growth rate.

Goldman Sachs also warned: “We recognize that the macro landscape remains challenging and that the US dollar may rise further in the near term.”

Currie, who heads commodities research at Goldman Sachs, believes recessions are a natural part of a long commodity supercycle. He told Reuters last November: “We expect a structural bull market in commodities, very similar to what we saw in the 2000s or 1970s.”

An analyst told CNBC in June that we are at the beginning of a commodity supercycle. “This is the first introduction to a commodity supercycle — it’s not just oil and gas, it’s metals, mining, agriculture — because the sector has suffered from underinvestment for a decade and more,” he believes.

Do you agree with Goldman Sachs on commodities? Let us know in the comments section below.

Goldman Sachs Urges Investors to Buy Commodities Now – Expects Stocks to Suffer as Inflation Remains High – Economics Bitcoin News

Kevin Helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.




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