Commodities investors needn’t fear the Federal Reserve. Raw materials perform best when the US central bank is hiking rates, according to Goldman Sachs Group, which used the findings of a study to buttress its overweight call on the asset class while acknowledging risks to its view.
During periods of rising interest rates, raw materials top returns from equities and bonds, analysts including Jeffrey Currie said in a May 8 report that crunched data going back to 1988 and covered four hiking cycles. The same finding came after a look a tightening cycles in China, they said.
