- Goldman Sachs (NYSE:GS) remains bullish on commodities, saying concerns about a potential U.S.-China trade war, demand weakness in emerging markets and oil producers' decision to increase production have been oversold, and even commodities most exposed to trade war risks are worth buying.
- “Only markets that cannot be rerouted globally to other consumers will be impacted by the proposed July 6th tariffs," Goldman says. "We believe that the trade war impact on commodity markets will be very small, with exception of soybeans where complete rerouting of supplies is not possible."
- "Even soybeans, the most exposed of all assets to trade wars, is now a buy," according to Goldman, after soybean futures have plunged to nine-year lows.
- The firm maintains its Overweight rating on the commodities space with a 12-month overall expected return of 10%, bolstered by strong global growth and depleting inventories in energy and metal markets that likely will result in higher prices.
- ETFs: USO, OIL, UWT, UCO, DBA, DWT, SCO, BNO, OTCPK:JJCTF, DBO, SOYB, DTO, RJA, USL, DBB, DNO, JJN, CPER, DAG, OLO, DBE, JJA, SZO, AGA, BOM, OLEM, RJN, WTIU, BDD, JJT, NINI, CUPM, LD, FOIL, JJM, OILK, BOS, FUD, UAG, USAG, AGF, RJZ, TAGS, ADZ, OILX, WTID, ONG, BDG, JJE, DIRT, LEDD, UBM, USOI, HEVY, UBN, USOU, USOD, UBRT, DBRT, JJUB, OILD, OILU, USAI
- Now read: Beans Are Overdue For A Recovery
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