Commodities Back as Gurus Eschew Financial Assets

Raw materials may return more than financial assets for the first time in three years as the global economy rebounds, according to Bloomberg surveys and 2009’s most accurate commodity forecasters.

Oil, corn, gold and palladium will advance as much as 17 percent this year, the analysts said. The S&P GSCI Enhanced Total Return Index of 24 commodities will gain 17.5 percent, Goldman Sachs Group Inc. estimates. That’ll beat the 11 percent jump in the Standard & Poor’s 500 Index and the 2.8 percent return on the benchmark U.S. 10-year note, forecasts compiled by Bloomberg show.

“Demand is growing on a global basis,” said Peter Sorrentino, who helps manage $13.8 billion at Huntington Asset Advisors in Cincinnati and predicted the collapse in prices in 2008. “Commodities are a great place to be to gain exposure to the growth that’s coming out of emerging markets.” Sorrentino’s largest commodity holdings are in coal and natural gas. (more)