Salient to Investors:
Jeffrey Currie et al at Goldman Sachs said:
- They cut their 12-month commodity return forecast for the S&P GSCI Enhanced Commodity Index to 0.1 percent, maintained a neutral recommendation on raw materials, while precious metals and agricultural commodities may drop 8 percent and base metals will gain 6 percent.
- Gold may decline to $1,050 at the end of 2014.
- Corn will decline in half2 2013 as increased US acreage boosts output, bolstering reserves, and their 12-month estimate is $4.75 a bushel.
- The strategic case for holding commodities remains strong, partly because raw materials are a hedge against geopolitical risks.
UBS says slow US economic growth will boost equities more than raw materials, is bearish on gold, and rates commodities as underweight.
Read the full article at http://www.bloomberg.com/news/2013-07-23/goldman-reduces-12-month-commodity-forecast-after-crude-s-rally.html
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