Citi Dumpster Dives; Finds Treasure in Commodities

They must be smoking some good shit over at Citi. They’re calling for a mid 2016 turn in commodity prices. I suppose these fucking things can’t drop forever.

The bank predicts the start of a recovery in some raw materials as returns from commodities head for a fifth annual drop amid the slowest growth since 1990 in China and the prospect of a stronger dollar if U.S. interest rates increase. Citigroup sees “plenty of opportunity ahead for investors” as it believes that in most cases futures prices are below fair market value, both in a six to 12 month period and, more particularly, beyond.

“Citi’s outlook for end-2016 projects higher prices for U.S. natural gas, crude oil, all base metals but especially copper and nickel as well as platinum and palladium,” analysts including Ed Morse said in the report. It also sees prices “mildly up across the staple cereals, but weak to very weak across the bulks. In short, a modest recovery.”

People have been trying to catch bottoms in commodities for years, getting their greedy little hands blown off in the process. If in fact 2016 maarks the bottom in commodities, expect to see a lot more of the bow tie on Jim Rogers ancient body, talking shit on CNBC about the virtues of farms and how his kids know mandarin.

FML.