Investments in commodity assets may become best in 2023-Goldman Sachs
2022.12.15 08:32
Investments in commodity assets may become best in 2023-Goldman Sachs
Budrigannews.com – Commodities were one of the few positive indicators for investors in 2022. Analysts at Goldman Sachs estimate that returns for the asset class could exceed 40% in 2023, indicating that the same story could continue.
In a note dated December 14, analysts including Jeffrey Currie stated, “Underinvestment in new capacity, a rebound in global growth, China’s reopening, and a slowing of rate hikes will power gains.”
The commodities index, as measured by Goldman Sachs, is anticipated to return +43% in 2023. Additionally, the investment bank noted that the indicator has returned +42% in 2021 and +23% so far in 2022.
The analysts stated, “While investors remain concerned with the 2023 growth outlook – a significant driver of the most recent sell-off – the global business cycle is far from over.”
They went on to say, “The long-term state of the market is predictable as supply and technological trends are much more persistent, with all the conditions required for another spike in 2023.”
Goldman analysts came to the following conclusion: “From a fundamental perspective, the setup for most commodities next year is more bullish than it has been at any point since we first highlighted the supercycle in October 2020.”
