Goldman's 10 commodity trade ideas for second half
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Posted On: 04/26/2019 6:45:57 AM
Goldman's 10 commodity trade ideas for second half
https://seekingalpha.com/news/3454686-goldman...econd-half
Goldman Sachs (NYSE:GS) is closing its top 10 trade ideas from a few months ago based on misplaced macro risk, and has introduced 10 commodities trades for a second half that it thinks will be based on shorter-focus considerations.
"With macro sources of returns diminishing, we believe that micro stories and relative value opportunities will become the most important source of returns going forward,” the firm says in a new note.
Among metals trades it's pushing: Long gold and short silver; long copper and short zinc; long palladium and short platinum; long LME aluminum and short SHFE aluminum; long Dec. '19 aluminum and short Dec. '20 aluminum; and long 62% vs. 58% iron ore premium.
In agriculture, it's urging to go long the S&P GSCI Agriculture and Livestock Index. And in energy, it recommends being long cal20 WTI-Dubai; shorting Q3 2019 TTF (European gas) spread to Nymex (U.S. gas) prices; and long the Q2 2020/Q2 2021 heating oil crack box spread vs. Brent.
Source: Bloomberg
https://seekingalpha.com/news/3454686-goldman...econd-half
Goldman Sachs (NYSE:GS) is closing its top 10 trade ideas from a few months ago based on misplaced macro risk, and has introduced 10 commodities trades for a second half that it thinks will be based on shorter-focus considerations.
"With macro sources of returns diminishing, we believe that micro stories and relative value opportunities will become the most important source of returns going forward,” the firm says in a new note.
Among metals trades it's pushing: Long gold and short silver; long copper and short zinc; long palladium and short platinum; long LME aluminum and short SHFE aluminum; long Dec. '19 aluminum and short Dec. '20 aluminum; and long 62% vs. 58% iron ore premium.
In agriculture, it's urging to go long the S&P GSCI Agriculture and Livestock Index. And in energy, it recommends being long cal20 WTI-Dubai; shorting Q3 2019 TTF (European gas) spread to Nymex (U.S. gas) prices; and long the Q2 2020/Q2 2021 heating oil crack box spread vs. Brent.
Source: Bloomberg
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