Good Morning. Commodities are giving back overnight gains and Stocks are holding steady just under unchanged
The dollar is slightly weaker. Bonds are weaker as well. Stocks are down about 25 bps. Gold is down $5.00, but Silver is up 20 cents. Crude was up over $1.50 but is now fading at up “only” 60 cents. Crypto is slightly bid. Grains are all up, with Wheat again leading the bunch up 4%
Post Excerpt
Goldman is tripling down on its commodity bull market thesis.
Since we launched our call for a commodities super cycle in October 2020, the enhanced S&P GSCI is up 125%. Yet this rally has occurred without investor participation and with no increase in additional funding. The likely consequences are a physical inventory and financial position liquidation to generate the necessary cash flow.
The market may be long on conviction, but financial constraints make it short on position, leaving those who can maintain a long position potentially seeing outsized returns, more than compensating for the higher volatility.
