As noted many, many times, Goldman Sachs has been the leading Wall Street salesman for commodities in the last year. It has stuck to this narrative all the way through the correction, telling everybody to keep catching the falling knife.
Today it finally gives in, which is probably bullish, though my own view is that there is further material downside ahead first.
Goldman’s explanation for this poor call is largely obfuscation. The fundamentals of this cycle are no different from any other commodity cycle I’ve lived through.
