| Investors are chided continually for getting excited and buying assets at the top and panicking and selling at the bottom. For example, TrimTabs Investment Research recently admonished those who were buying energy exchange-traded funds after those commodities had lost as much as 60% of their value.
Energy-sector exchange-traded funds attracted $1.2 billion in the first three weeks of March, a period during which the ETFs suffered an average decline of 7.2%, the firm said in a recent research note. “Fund investors have been tremendously complacent about recent price declines in commodities, particularly energy-related commodities,” the note said. David Santschi, TrimTabs’s chief executive, is quoted as saying: “Investors keep piling into commodities ETFs even though their performance has been terrible. How steep will losses have to get before investors start selling?”........................................Full Article: Source
|