Goldman Sachs says commodities are in store for a “bullish concoction” this year, citing a combo of the macro environment and low inventories boosting prices. Analysts say commodities are looking at “superior returns” and are expected to outperform other asset classes. “Gold, in particular, is likely to be on a cusp of sustained upside as de-dollarisation is very bullish gold…at a time that the Fed is likely to increasingly shift towards growth concerns slowing its rate hike path allowing ETF holdings to stabilise,” a recent note read. “We believe a sustained inflection in the USD provides an ingredient for a fairly significant upside in commodities.” Morgan Stanley’s Michael Wilson is warning investors that the bear market isn’t over yet for stocks. “We think the earnings recession is imminent,” he said.

Kitco News/Anna Golubova
This year sets up ‘bullish concoction’ for commodities, gold on ‘cusp of sustained upside,’ says Goldman

Commodities are in store for a ‘bullish concoction’ in 2023, according to Goldman Sachs, which sees a combination of the macro environment and low inventories boosting prices.

The commodities sector is looking at “superior total returns” in 2023 and is expected to outperform other asset classes, analysts at Goldman Sachs said in a note.

After a surge in commodity prices in the first half of 2022, the sector saw a decline due to rising interest rates and lower demand. However, the outlook for 2023 is very positive as China reopens amid low inventories, said Jeff Currie, head of commodities research at Goldman.

“You cannot come up with a more bullish concoction for commodities,” Currie said during a presentation last week. “Lack of supply is apparent in every single market you look at, whether it is inventories at critical operating levels or production capacity exhausted.”

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Business Insider/Phil Rosen
Don’t buy into the current stock rally as the final stages of the bear market have yet to play out, Morgan Stanley’s top strategist says

Investors shouldn’t let the current stock market surge fool them into buying the rally because corporate earnings are still set to decline, according to Morgan Stanley’s Michael Wilson.

In a note on Sunday, the firm’s top strategist explained that more and more investors are beginning to entertain the idea of an economic soft landing, or have postponed their recession forecasts to later in the year due to China’s reopening and falling natural gas prices in Europe.

But the bear market isn’t over yet, he said.

You can read the full article here, here.

Associated Press/Ken Sweet
Crypto firms acted like banks, then collapsed like dominoes

Over the past few years, a number of companies have attempted to act as the cryptocurrency equivalent of a bank, promising lucrative returns to customers who deposited their bitcoin or other digital assets.

In a span of less than 12 months, nearly all of the biggest of those companies have failed spectacularly. Last week, Genesis filed Chapter 11, joining Voyager Digital, Celsius and BlockFi on the list of companies that have either filed for bankruptcy protection or gone out of business.

This subset of the industry grew as cryptocurrency enthusiasts were looking to build their own parallel world in finance untethered to traditional banking and government-issued currencies. But lacking safeguards, and without a government backstop, these companies failed in domino-like fashion. What started with one crypto company collapsing in May spilled over onto one crypto lending firm and then the next.

You can read the full article here, here.

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