01.04.2015 - Investors exit commodities at record rate
Investors are bailing out of commodity funds at the fastest pace on record, and the exodus shows no signs of ending. US exchange-traded funds linked to broad baskets of raw materials saw a net outflow of $1.23bn over the first three months of the year, the most of any quarter since the securities were created in 2006, data compiled by Bloomberg show. Bank of America says ample supplies have unleashed price wars, and Goldman Sachs predicts a 20% drop for commodities already near a 13-year low. Morgan Stanley and Société Générale also have cut forecasts for a whole range of items. Rising supplies created bear markets over the past year as drillers unlocked more oil and natural gas, copper mines expanded and farmers harvested record maize and soya bean crops. The strongest dollar in at least a decade encouraged countries with weaker currencies to export more...............................................Full Article: Source
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