Title: Goldman Sachs Loses Renowned Commodities Bull as Jeff Currie Retires
Date: [Current Date]
Goldman Sachs Group, a leading investment banking firm, has announced the retirement of Jeff Currie, its global head of commodities research. Currie’s departure marks the end of a remarkable three-decade career during which he established the bank’s research desk as a prominent institution in the energy, metal, and agricultural markets.
Currie joined Goldman Sachs in 1996, leaving his position as a professor of microeconomics and econometrics at the University of Chicago. His decision was influenced by the volatility of natural gas prices during a freezing winter. At Goldman Sachs, Currie became the first Wall Street analyst to solely focus on commodity markets.
In 2004, Currie and his team gained recognition for their prediction that China’s economic boom, coupled with a lack of investment in key materials, would result in a significant increase in prices. This phenomenon became known as “the revenge of the old economy,” as oil, metals, and grains experienced a multi-year upswing.
Currie achieved partner status in 2008, a year that witnessed Brent crude oil prices reach an all-time high of nearly $150 per barrel. However, in 2014, Goldman Sachs adopted a bearish stance as the market became flooded with oil and gas produced through fracking technology. The subsequent decline in energy prices led to the closure of many commodities hedge funds that were Currie’s clients.
While Currie’s recent calls have seen more limited success, he remains steadfast in his convictions. In late 2020, when lumber and other commodities signaled a warning about inflation, Currie and his team expressed optimism about the beginning of a bull market. They coined the term “supercycle,” attributing it to the growing demand for commodities in the energy transition. Although the supercycle prediction has yet to materialize, Currie stands by his belief and asserts that he is more convinced than ever of its occurrence.
Currie’s retirement marks a significant loss for Wall Street and the commodities market, as his expertise and insights have contributed greatly to the industry. His departure raises questions about how the commodities research landscape will evolve in the years to come. As Goldman Sachs bids farewell to its commodities bull, industry participants eagerly await the emergence of a new visionary to fill his shoes.