Goldman Shills For Commodities Hardcore: ‘Strategic Case For Owning Commodities Has Rarely Been Stronger’

These motherfuckers are fixing to lose you a great sum of money again.

Year to date, cocoa is up 54%, mostly due to fucked up weather in Africa — coupled with the fact that hipsters are digging dark chocolate in bulk. Other commodities that are springing higher is Wheat +15%, Oil +13%, Corn +10%, and Soybeans +6%.

Face it. While you’ve been dicking around with MUH stocks, raw commodities have been the shit.

On the other side of the ledger, however, is Sugar -22% (blame hipsters), Lithium -15%, Palladium -11%, and Livestock -10% (kill all vegans).

After all of this horseplay, the sages from Goldman Ballsachs emerge to cast a great ruinous ruin upon your household.

Goldman Sachs strategists have become even more bullish on commodities and say the “strategic case for owning commodities has rarely been stronger.”

“We believe the macro backdrop for commodities is as good as we have seen in years, suggesting large allocations to the sector to benefit from such returns,” the strategists wrote.

The party will end when inflationary pressures help lay the ground work for a recession.

“History, however, suggests it will be a recession, potentially aided by the
inflationary pressures created by commodity prices that will end this commodity bull
market,” they wrote.

Goldman Sachs commodities strategists, led by Jeff Currie, have been overweight commodities since 2016, but they see a solid backdrop for gains to continue as inventories decline and demand grows.

“Robust late-cycle growth is depleting global supply chains,” they wrote. “As the business cycle deepens and inflationary concerns push interest rates higher, cross-asset correlations with commodities decline and the diversification benefits of owning commodities rises with higher rates.”

Emerging markets could help extend the business cycle, giving global demand “more runway.” .

They also note that the geopolitical risks have risen in commodity producers Russia, Iran and Venezuela. Trade policy risks also add to the inflationary pressure in commodities.

I know what you’re thinking: ‘those are some evil motherfuckers out there, trying to take my cheddar again’ and you’d be correct. Well, not quite. It’s a conspiracy theory. There are two possible outcomes here: either Goldman is incredibly good and evil or incompetent and wrong.

What do you think?

Thank you POTUS for making the dollar rise against the evil euro this time of year — just before the summer vacation season. With the dollar rising vs the euro, we’ll be able to afford additional items whilst sauntering in the ancient ruins of Europe and for that we are all eternally thankful.

The downside to all of this win is absolute rape in the gold and oil markets. But those people suck any ways, so who cares right?

Off to sell my NUGT.

I just got back from walking my fucking dog, also known as the unfriendly neighborhood coyote. She was surprisingly calm this morning, having on lunged at one jogger and chased two squirrels up trees. My leash is extended, so she really gets a good running start until the inertia of the leash stops her in flat in her tracks. Mostly I am tired and cranky when I start walking the damn thing, but by the time I get back home I’m in a good mood because she’s so damned aggressive. It makes my black heart tingle with pride.

S&P futures are doing nothing at all right now. You might as well close out the browser after you’re done reading this shit and go back to bed.

By the way, I haven’t even started the last part of my three part book series. I’ve been in the process of doing something for months and haven’t allowed myself to write or read anything until its done. I might continue where the story left off — but I’m also tempted to let some time elapse because I think what I’m doing right now is interesting and might make for some good reading one day.

Gold and oil are sharply lower this morning, and also cryptos. Maybe it has something to do with dollars being up 0.4% v the euro. Or it’s more nothing. You decide.

After I quit writing this post, I’ll go into Exodus and compile the picks for this month’s portfolio. Then, perhaps in about an hour or two, I might go for a drive to get some plants for the yard. It’ll be 85 all week and I haven’t gardened in two years. Last night, around 4:30am, right before I went to sleep, I ordered a hedge trimmer. I haven’t hedged the bushes in two years either and they’re starting to look retarded, so I’ll need to address that soon. I used to have the landscaper do all of that shit for me. Hell, I used to have people in this house almost every day of the week, fixing this or that, inspecting and prodding. I think I was just spending money to spend it. I’m over that phase now and feel like doing shit myself again.

I’m getting off track here. Go back to sleep.