Released December, 2018
<strong>Commodities Are Ripe to Take the Rally Baton From the Dollar</strong>
(Bloomberg Intelligence) -- The bias for a dollar peak is a significant catalyst to a recovery in broad commodities, which are on the cusp of taking the bull-market baton as the outperforming U.S. stock market wanes along with expectations for further rate hikes. The crude-oil correction should be at its nadir as West Texas Intermediate shows as much pessimism near $50 a barrel as it did optimism above $70. Natural gas should thrive with crude oil likely confined to that price range.
Metals should be the primary beneficiaries of a peak dollar. Base-metals demand vs. supply conditions are quite favorable, and gold is as ripe to rally as natural gas was a few months ago. Corn looks set to spring higher too. Agriculture has plenty of upside, particularly if the Brazilian real has bottomed