Commodities analysts at Goldman Sachs say its forecast for major rally this year has turned out to be wrong.
- We were wrong in forecasting the prices
Kudos to these people for admitting that. They say:
- Prices continue to move against our expectations.
- He mentioned an unprecedented liquidation of stocks and positioning
- “What is the explanation? It is probably the largest commodity destocking the complex has ever seen.”
Looking ahead, I still see higher prices:
- “Bulls, like us, are finding comfort in the fact that end-use demand across the commodity complex has not shown signs of stagnating and investment in supply remains elusive,”
- “No recession would likely lead to higher oil and commodity prices as well as higher rates, to which stocks would likely react poorly.”