(Kitco News) – For the first time in almost two years commodity analysts at JPMorgan have turned bullish on commodities and are now overweight the entire complex.
“In a number of commodities, prices have fallen far enough for long enough to force involuntary cuts in production and to spur fresh demand,” the bank said in the report released Sunday. “Risk is now skewed toward demand growth surprise and production disappointment.”
Although the firm’s analysts do admit that downside risks remain high, their recommendation in the report has been very clear.
“Our analysis concludes that it is in the best interests of most commodity index investors to buy immediately,” they said. “We would rather be premature in our pretend portfolio than you be late in your real portfolio.”
The firm is slightly more bullish on energy commodities particularly oil than it is in precious and base metals – the analysts said in the report that their “overweight” view is based on the energy sector, “that dominates most indices.”