J.P. Morgan: Commodities Look Most Vulnerable

J.P. Morgan: Commodities Look Most Vulnerable

  • Posted Friday, March 11, 2011 -
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J.P. Morgan's asset allocation shop took a look across asset classes and found commodities look the most risky at present. They write:

Ranking the three major riskier asset classes on value and positions, we would rank equities least vulnerable, credit in the middle, and commodities most. Our measures still signal that both equity holdings and multiples are near historic means. Credit surveys show that most managers remain significantly long corporate credit, while more anecdotal evidence suggests that end investors have focused on credit first as the best way to position on economic recovery and have only recently started to move more into equities. Position data show very elevated long positions in commodities while the rally hasbrought many to record highs.

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