No wonder the market is so screwed up…
I’m reading this on Zero Hedge… and just can’t believe the crap that goes on.
At the end of June 2011, Goldman Sachs cuts in Brent target less than a month after hiking the price target to $130… which came a month after dropping the forecast to $105.
Goldman said, at the time, “The International Energy Agency announced today that its member countries have agreed to release 60 million barrels of oil from their emergency stocks over a period of 30 days. The IEA has coordinated this release, only the third in its history, in response to the ongoing loss of Libyan light sweet crude oil production and the impact that the resulting higher crude oil prices are having on the world economy. We estimate that a 60 million barrel release by the end of July has the potential to reduce our 3-month Brent crude oil price target by $10-12/bbl, to $105-107/bbl. 125/bbl.”
Okay, fine. Goldman has lost its mind.
But here’s the kicker, as Zero Hedge points out:
“Progress in dealing with the Greek budget crisis and better economic data have improved sentiment around cyclical assets in recent days. We continue to expect further increases in commodity returns later this year and into 2012. We maintain our overweight recommendation for commodities on a 3-, 6- and 12-month horizon and our 20% 12-month commodity returns forecast.”
That news comes just weeks after the last flip flop.
Come on, Goldman. What the hell?
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