Commodities are this year’s best-performing asset class, with crude oil continuing to recover from its worst crash in over four decades.
But the lingering impact of that crash is precisely why many investors are still nervous about diving in, to the dissatisfaction of Goldman Sachs’ commodity strategists. They’ve been overweight the asset class since 2016, and they said in March that there was no better time in the past decade to invest in commodities.
“Surprisingly, markets remain complacent,” Jeff Currie, the firm’s global head of commodities, said in a note on Wednesday. “Oil speculative net long positions have been declining since $73/bbl with the common manta, [sic] ‘we will ride this one out.’ These are dangerous words from a risk management perspective.”
Brent crude oil, the international benchmark, traded up 0.