Wall Street spruikers are steadily narrowing their bullish bets on the new “commodities supercycle”. Although headline indexes for commodities are still very high, they are increasingly reliant upon energy for any bull case.
As we saw last week, the numero uno copper and metals bull, Goldman Sachs, is hedging its bets big time:
We divide the total listed market cap into “Property” and “Non-Property” cohorts. In the latter, we continue to favor regulation beneficiaries that receive policy tailwinds, notably Semi, Software, Renewables, Autos, and Sportswear. In the former, we would look for alpha opportunities in late-cycle property plays, including brokers, copper/aluminum, and select consumers.
