It’s official: 2022 will go down in history as one of the most profitable years ever for Commodity traders. The same narrative could repeat itself in 2023, according Goldman Sachs who predict another record-setting year ahead for Commodities.
This is now the second consecutive year that has seen a total of 27 commodities ranging from the metals, energies to agriculture tallying up astronomical double to triple digit gains – outperforming every other asset class out there!
According to Goldman Sachs, “underinvestment in new capacity, a rebound in global growth, China’s reopening, a slowing of global central bank rate hikes, leading to the eventual end of rate hikes next year and signs of a dollar peak will power gains across the entire Commodities complex”.
In a note to clients, the bank’s analysts wrote that “the setup for Commodities in 2023 is more bullish than it has ever been since they first highlighted the Supercycle in late 2020”. The Wall Street bank concluded by reconfirming their view that “we’re still only at the first inning of a multi-year, potentially decade-long Commodities Supercycle”.
And they are certainly not alone with their bullish call.
In fact this now becoming the common view, amongst a long list of leading Wall Street banks. This week JP Morgan, Citigroup and Morgan Stanley – also joined the list with their prediction that 2023 is set to be another stellar year for Commodities due to all the macroeconomic events that are currently unfolding.
Extraordinary times create extraordinary opportunities and right now, as traders we are amidst one of the greatest eras of wealth creation the world has seen. Whichever way you look at it, the case for Commodities in a well-diversified portfolio has never been more obvious than it is right now!
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions: