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Goldman Sachs advises to buy commodities
Commodity trade expert, Goldman Sachs Inc., cooled anxiety among investors expecting that trade war between US and China represents serious threat to raw materials market, Bloomberg reports.
Commodity trade expert, Goldman Sachs Inc., cooled anxiety among investors expecting that trade war between US and China represents serious threat to raw materials market, Bloomberg reports.
Experts in Goldman Sachs think that most of commodities will not be hurt significantly by growing conflict, and now it is time to buy.
Bank predicts commodity returns at 10% within 12 months.
The exception might by soy beans, where complete rerouting is impossible.
Commodities suffered serious losses since the beginning of trade conflict due to investors’ concerns in regards to reduction in global demand. Bloomberg Commodity Index showed biggest drop since mid-2016 in June. Significant losses can be seen in copper and soy sectors. Energy markets are also under careful watch due to recent OPEC’s actions.
Other banks, including Morgan Stanley, are more cautious and think that trade tension will hurt demand for raw materials.