Morgan Stanley Goes Bearish On Commodities Amid Brexit, China Slump

There is a bull and bear case for commodities, a Morgan Stanley Global Metals Playbook notes. The June 27 report takes a decidedly bearish view of hard commodities in general. It issues a mostly neutral or even more pronounced bearish take on commodities in general, with one exception. The report contrasts their recommendation from last October, which was bullish. Commodities, as measured by the S&P GSCI Index, mostly sold off from October 2015 to February 2016, when they rallied.

Morgan Stanley and the predominate bear case for commodities

Heading into the third quarter of 2016, commodity markets could find difficulty. In particular, the 67-page report takes a most negative...