Commodities

Goldman Says Momentum Investing Good in Commodities
(New York) “The trend is your friend” is a common saying in finance, and Goldman seems to have taken it to heart in its new report. The bank has analyzed whether the strategy is applicable for commodities investing, and it has found that with some caveats, it is. “Commodities in persistent contango benefit the most from trend-following by avoiding the negative carry”, says Goldman Sachs, noting that cotton, zinc, heating oil, gold, wheat and crude oil are among the commodities that benefit from a momentum-based approach. OxWFD: The difficulty with commodities investing is the storage and/or roll-over issue, either of…

How Trump Will Affect Commodities

 |  Wednesday, 15 February 2017 10:50  |  Published in Commodities
How Trump Will Affect Commodities
(Houston) Most of the media’s focus on Trump (in an investment capacity) has been about his impact on on stocks and bonds, but much less has been written about how he might impact commodities. This article digs into that topic. Firstly, aluminum and steel both look to get a lot more expensive if Trump tries to rely only on US production. Secondly, gold looks likely to rise as well as investors use the metal as a “Trump hedge”. Thirdly, US banks could once again become highly involved in commodities trading, which could produce big profits. Fourth, Trump’s border tax could…

Barclays Warns of a Big Commodities Crisis This Year

 |  Thursday, 05 January 2017 10:29  |  Published in Commodities
Barclays Warns of a Big Commodities Crisis This Year
(Houston) Barclays has just gone on the record warning investors about the possibility of a severe crisis in commodities this year. The trick of it is, it will likely be the kind of crisis that makes prices rise—a supply shortage. There are numerous risks on the horizon for commodities, including “a default by Venezuela, riots in Chile and a trade war with China”, all of which could affect supply and demand for commodities. Barclays summarized their view, saying “The new politics of populism and protectionist trade policies have the potential to disrupt global supply and demand assumptions for various commodities…

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