Goldman Sachs commodity analysts say its forecasts for major rises this year has turned out wrong.
- we were wrong on price expectations
Kudos to these folks for acknowledging this. They say:
- “Prices continue to move against our forecasts,”
- cite an unprecedented clear-out of stockpiles and positioning
- “What is the explanation? It is likely the largest commodity destocking the complex has ever witnessed.”
And, looking ahead, still see higher prices:
- “Bulls, like ourselves, find comfort in the fact that end-use demand across the commodity complex has not shown recessionary signs and investment in supply remains elusive,”
- “The absence of a recession would likely lead to higher oil and commodity prices as well as higher rates, to which equities would likely react poorly,”