DBC: Bold Analyst Call Says This Sector is an 'Immediate Buy'

Most of the time, analysts make calls that are either pitifully late or laughably safe. I mean, is it really a bold call to downgrade Apple (NASDAQ: AAPL) after it has already fallen 30%? Or, how about upping your target on Tesla Motors (NASDAQ: TSLA) after an 80% spike? Now, I am not saying that calls like these are wrong, just that they aren't very prescient, nor are they very bold.

There are, however, a few analyst calls that are both potentially early, and anything but safe, and I think these are the calls that merit traders' attention. The latest call of this sort comes to us from JPMorgan (NYSE: JPM) commodities analyst Colin Fenton, who now recommends investors overweight the commodities sector.

In a note to clients, Fenton wrote the following: "Our analysis concludes that it is in the best interests of most commodity index investors to buy immediately. For the first time in more than 2 years, we recommend an overweight allocation to commodities. In our own methodology, we define this allocation as a 5% to 7% net long exposure in an institutional portfolio, up from the 3% to 5% directionally neutral exposure we have been recommending."

Now, it's one thing to raise your exposure to a sector that's doing well, but when it comes to commodities, that sector has been virtually slaughtered.  (more)

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