Goldman Sachs Group Inc urges investors to invest in commodities without any hesitation. The risk estimates being made about the risk due to the recession in the global market are being shown exaggeratedly. There is no need to worry too much about recession in the near term.
Goldman Sachs says that in view of the severe energy shortage and supply shortfall across the world, further increase in raw material prices will be seen. Analysts at Goldman Sachs have said in a recently released report that the likelihood of recession in countries outside Europe in the next 12 months is relatively low.
These analysts further said that in this period of energy shortfall, along with crude oil, other commodities will see good growth. There are good opportunities to buy these at this time. Let us tell that after Russia’s invasion of Ukraine, commodity prices reached their record high in the month of June. After that, the central banks of different countries were seen increasing interest rates to tighten the noose on rising inflation all over the world. Due to which the fear of recession in the global economy started deepening. Simultaneously, the prices of commodities also started declining.
On Friday last week, Fed Chairman Jeroen Powell indicated that he may increase his interest rates more aggressively going forward. Because controlling inflation is at number one in his priority list. After this announcement by Jeroen Powell, in today’s business, the Indian market, including India, the markets around the world are seen diving.
Goldman Sachs, in its note, titled ‘Buy commodities now, worry about the recession later’, has said that we will see further pressure on equities due to persistence in inflation and firmness in US Fed’s stance. . On the other hand, from the investment point of view, commodities seem to be in a much better position at the moment. Presently the demand for commodities is more than the supply. Hence, it is expected to accelerate further.
However, some other leading Wall Street banks have been cautious about commodities in recent times. Citigroup Inc issued a warning in July, saying that if the slowdown has a negative effect on demand, then by the end of this year crude oil could reach $ 65 per barrel. At present, crude oil is seen around $101.70.