134 days ago • Posted by Charles-Henry Monchau
Goldman believes that we are moving towards a structural bull market in commodities. Now forecast a 12-month return of +28%, their most bullish assumption for any asset class.
Goldman now forecasting a 12-month return of 28% for commodities - most bullish assumption for any asset class out there. "Nearly all commodity markets are in, or moving toward, a deficit with inventories drawing. Given that inventories are drawing this early in the cycle, we see a structural bull market for commodities emerging in 2021.In our view, the bull market is driven by three major themes: 1) structural under-investment in the old economy; 2) Policy driven demand; 3) macro tailwinds from a weakening dollar and rising inflation risks