Overnight market review (2022.10.26) Goldman Sachs said commodities are a key asset class to hold during the current market volatility, but one commodity in particular offers a “welcome opportunity”.
That outlook is at odds with the commodities industry’s poor performance this year.
Commodities necessary for diversification are oil and agriculture, Goldman Sachs said in a report this week. “While the tactical outlook for other asset classes remains cautious, oil and the sporadic agriculture sector present a good opportunity for investors to diversify their portfolios,” Goldman wrote.
Commodities are expected to return 12.8% in the next three months, 21.1% in the next six months and 34.9% in the next 12 months, the report said. This refers to the oil-heavy S&P GSCI Commodity Index.
Trading strategy deployment: it is recommended to do more at low levels
All transactions involve risks, the above analysis is for reference only. When placing an order, be sure to set the lot size and remember to set the stop loss.