Nov 29, 2018 - 2019: Goldman Predicts Commodities Will Soar
"Commodity bull Goldman Sachs Group Inc. is undaunted by the sell-off in raw materials and is forecasting returns of about 17 percent in the coming months, describing the current situation as unsustainable and touting this week's G-20 meeting in Buenos Aires as a potential turning point. 'Given the size of dislocations in commodity pricing relative to fundamentals - with oil now having joined metals in pricing below cost support - we believe commodities offer an extremely attractive entry point for longs in oil, gold and base,' analysts including Jeffrey Currie said in a report....Here are some of Goldman's top ideas for next year, as listed in the report: Oil: Goldman expects an OPEC supply cut and its announcement will lead to a recovery in prices. It advises going long on short-dated Brent....Gold: The market has priced in 10 out of 12 of the Federal Reserve's hikes that the bank expects, and the strong dollar trend is seen reversing. 'If U.S. growth slows down next year, as expected, gold would benefit from higher demand for defensive assets,' Goldman said, adding that there may be additional support from central bank buying."