Tuesday, April 16, 2013

Goldman: 'There Are Weeks When Decades Happen'




From BI: Last Wednesday, Goldman's commodities team, led by Jeffrey Currie, issued a short gold trading recommendation to clients, right before the market completely melted down. In a new piece today – titled "Commodities Update: There are weeks when decades happen" – Currie and his team argue that the latest events in the gold market are a further indication that the run gold has taken over the past decade is over.

At the same time, it seems like something similar is happening in the natural gas market – but there, it's bullish. The Goldman analysts even call it "the new safe haven."
:
Over the previous five years the two highest conviction trades in the commodity complex were being long gold in response to the debasing actions of central banks around the world and short natural gas in response to the shale revolution. These two trends have now likely reversed and our conviction in these new trends has risen significantly over the past month as we have introduced both short gold and long natural gas trading recommendations….

To find out more (and see the charts) check out http://www.businessinsider.com/goldman-short-gold-long-natural-gas-2013-4


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