Perhaps the worst commodity analysis ever written

I have criticised Bloomberg commodities analysis before. But today’s effort goes from bad to disastrous.

Stock-market routs like Wednesday’s highlight the importance of portfolio diversification. While not suitable for all investors, commodities are looking increasingly cheap and uncorrelated to the equity market. Unlike stocks — which experience their worst drawdowns in a recession — commodities rally through downturns. Further, buoyant excess liquidity should limit the extent of their current selloff and support higher prices.

Err, stocks rally through recessions as well. Commodities are a late-cycle, pro-cyclical asset class. They exaggerate equity booms and busts, not hedge them.