Thursday, June 6, 2013

Goldman: Bull Run Over as Returns Trail Stocks





Bloomberg reports that commodities are trailing equities for the longest stretch in almost 15 years as Goldman Sachs Group Inc. and Citigroup  predict the end of the decade-long bull market even as the global economy expands.

The Standard & Poor’s GSCI Spot Index of 24 commodities lagged behind the MSCI All-Country World Index for six months, the longest stretch since 1998. Hedge funds cut combined bullish bets across 18 U.S. raw-material futures by 51 percent from a 16-month high in September and are bearish on six of them. Commodities will return 1.6 percent in a year as losses in agriculture and precious metals diminish gains from energy and industrial metals, Goldman said last month....


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