| From Economist.com: The charge-sheet against commodity speculators is flimsy. Investors have certainly acquired more of a taste for commodities over the past few years. According to Barclays Capital, around $320 billion of institutional and retail money is now devoted to commodities, compared with just $6 billion a decade ago. That sum does not include hedge funds, whose involvement is significant but difficult to quantify.
Fund managers, who allocated a pittance to commodities a few years ago, now put up to 5% of their cash into them. Commodities diversify portfolios: in theory, at least, price moves are uncorrelated to shares and bonds..............................................Full Article: Source
|