The Barrel Bounce

Commodities will get their long-overdue bounce today.  It’s been a rough few weeks for all risk assets but the pain in the once-hot hard assets complex has been the most substantial.

The bounce was due and now it is here.  It comes courtesy of Goldman Sachs, they are telling their clients to get back in…

From Bloomberg:

Goldman Sachs suggested buying oil, copper and zinc, reversing last month’s call to sell commodities, while Morgan Stanley raised its forecast for Brent crude by 20 percent…

“The risk/reward once again favors being long commodities,” Jeffrey Currie, head of commodities research at Goldman Sachs in London, wrote in an e-mailed report today. “Economic growth will likely be sufficient to tighten key supply-constrained markets in the second half, leading to higher prices.”

Have a look at energy prices:

Personally, I’ll be seeing what I can sell into this in terms of commodity-related stocks.  Thanks for the bounce, guys – sold to you.