empty
30.08.2022 02:37 PM
Goldman Sachs believes it is time to invest in commodities

Global investment bank Goldman Sachs urged investors to buy both commodity stocks and futures and worry about a recession later. The company's analysts believe commodities are the best assets to own in the late cycle when demand remains higher than supply. Meanwhile, economists think stocks could slightly sink in the near term as inflation remains high and the Fed is likely to continue 8implementing its hawkish policy.

This image is no longer relevant

"Our economists view the risk of a recession outside Europe in the next 12 months as relatively low", Goldman wrote in a note titled "Buy commodities now, worry about the recession later". "With oil the commodity of last resort in an era of severe energy shortages, we believe the pullback in the entire oil complex provides an attractive entry point for long-term investments", the firm's analysts explained.Notably, US Federal Reserve Chairman Jerome Powell said last week, "We are taking forceful and rapid steps to moderate demand so that it comes into better alignment with supply, and to keep inflation expectations anchored. We will keep it until we are confident the job is done."

The European Central Bank follows a similar strategy. ECB Board member Isabelle Schnabel recently argued that central banks around the world risk losing public trust and must now act forcefully to combat inflation.On the one hand, from a cross-asset perspective, equities could suffer as inflation stays elevated. On the other hand, commodities are the best asset class to own during the late-cycle phase where demand remains above supply. The late-cycle phase typically involves a rise in inflationary pressures and an economy that moves past the peak rate of economic growth, Goldman noted.

Premarket:

First Solar's shares rose by 1.9% in premarket after the company announced that it would spend $1.2 billion to expand production in the United States, including building a new plant in the southeast. Earlier this year, the solar equipment maker said it would unlikely build new facilities in the United States.

Twitter's stocks are almost not reacting to the company's management disagreement with Elon Musk. Twitter fell by 1% in premarket after Musk filed another notice to terminate his deal. The billionaire first announced he had violated the $44 billion deal to buy Twitter in early July. The second notice, detailed in the SEC document, gave additional reasons for the rejection.

Shares of China's Baidu advanced after the company reported better-than-expected earnings and revenue for the latest quarter. The search company noted a recovery of advertising sales and increased demand for its cloud offerings. Baidu's shares added 3.8% in premarket.

This image is no longer relevant

The Bed Bath & Beyond continues its positive dynamics. Shares of the home improvement retailer surged by 11.7% in premarket after rising 25% yesterday.

Today, Netflix denied Bloomberg's claims that it was considering introducing a monthly fee from $7 to $9 for its new ad-supported streaming service. That information was released yesterday. Netflix added 1.4% in premarket.

As for the technical picture of the S&P500, buyers may expect an upward correction. However, it is necessary to break through the $4,064 level. In case of strong US statistics, it is recommended to focus on this level. Whether the index will continue growing or return to the weekly lows depends on its breakthrough. In case of a further decline after the Fed policymakers' statements and weak statistics, a breakthrough of $4,038 will bring the index back to $4,003. Then it will have a chance to move to the area of $3,968 and $3,940 where the pressure may ease slightly. The index is likely to rise only after monitoring $4,064 resistance. Thus, it will reach $4,091. Only in this case it is possible to see an active growth in the area of $4,116 where large sellers will return to the market. At least, some market makers wish to fix profits on long positions. The level of $4,150 will be considered a more distant target.

Jakub Novak,
Analytical expert of InstaForex
© 2007-2025
Summary
Urgency
Analytic
Pavel Vlasov
Start trade
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Trump's new tariffs, BTC rally, and major AI deals: signals traders cannot afford to ignore

Global markets are once again under pressure. President Donald Trump has announced 30% tariffs on imports from the EU and Mexico, triggering a sharp reversal in US stock index futures

Аlena Ivannitskaya 15:31 2025-07-14 UTC+2

Update on US stock market on July 14: Trump returns to tariff war

S&P500 Snapshot of US major stock indices on Friday Dow -0.6%, NASDAQ -0.2%, S&P 500 -0.3% (S&P 500 closed at 6,229, trading in a range of 5,900 to 6,400

Jozef Kovach 14:53 2025-07-14 UTC+2

Update on US stock market on July 14. SP500 and NASDAQ sliding due to Trump's tariffs

As of yesterday, the US benchmark stock indices closed lower. The S&P 500 fell by 0.33%, while the Nasdaq 100 declined by 0.22%. The industrial Dow Jones lost 0.63%. Today

Jakub Novak 10:09 2025-07-14 UTC+2

Update on US stock market on July 11: stock indices extending modest growth

S&P500 Snapshot of major US stock indices Dow Jones: +0.5% NASDAQ: +0.2% S&P 500: +0.3%, S&P 500 closed at 6,283, trading in a range of 5,900 to 6400 The stock

Jozef Kovach 12:57 2025-07-11 UTC+2

US stock market on July 11: S&P 500 and NASDAQ hit record highs before retreating

On Wednesday, the US stock market closed higher, with the S&P 500 gaining 0.27%, the Nasdaq 100 rising 0.09%, and the Dow Jones Industrial Average advancing 0.43%. However, during Asian

Jakub Novak 11:42 2025-07-11 UTC+2

Stock market on July 10: SP500 and NASDAQ extend upward momentum

US stock markets ended the previous trading session with gains, continuing their upward trajectory. The S&P 500 rose by 0.61%, the Nasdaq 100 advanced 0.94%, and the Dow Jones Industrial

Jakub Novak 12:42 2025-07-10 UTC+2

Update on US stock market on July 10: bullish trend going on

S&P500 Snapshot of major US stock indices on Wednesday: Dow +0.5%, NASDAQ +0.9%, S&P 500 +0.6%, S&P 500 6,263 in the range of 5,900 to 6,400. The stock market began

Jozef Kovach 11:41 2025-07-10 UTC+2

Update on US stock market on July 9: consolidation stage. Bank stocks decline

S&P500 Snapshot of major US stock indices on Tuesday: Dow -0.4%, NASDAQ -0.1%, S&P 500 -0.1%, S&P 500 at 6,225, within the range of 5,900 to 6,400 A lack

Jozef Kovach 12:55 2025-07-09 UTC+2

Stock market on July 9: S&P 500 and NASDAQ struggle to gain ground

US stock indices closed mixed on Monday, reflecting growing uncertainty in investor sentiment. The S&P 500 dipped slightly by 0.07%, the Nasdaq 100 made a modest gain of 0.03%, while

Jakub Novak 11:22 2025-07-09 UTC+2

Stock market on July 8: S&P 500 and NASDAQ continue their decline

US stock indices closed lower yesterday, extending recent losses. The S&P 500 dropped by 0.79%, while the Nasdaq 100 fell 0.92%. The industrial Dow Jones index retreated by 0.94%. Asian

Jakub Novak 10:48 2025-07-08 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.