They haven't been this sexy since the mid-2000s. Yes, we're talking about commodities, naturally, with names from Goldman to JPMorgan joining the chorus calling for higher prices.
How come? Stimulus is starting to make a difference, investors are hopeful about vaccines, and the weak dollar's also a boost.
Speculators are piling in. Hedge fund bets on rising prices are near the highest since at least 2011 and are worth almost $120 billion, according to calculations that include 20 out of 23 materials in the Bloomberg Commodity Index. Oh, and that index itself is trading around six-year highs.
And while many calls for a rally came mostly in the last few months, a familiar name gave the sector a shoutout earlier. Ex-Goldman CEO Lloyd Blankfein suggested putting money into beaten-down raw materials at a Sept. 16 virtual event organized by CME Group.
Since then, more than $30 billion has been added in bullish wagers. Nice one, Mr. Blankfein.
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