12.09.2016 - Race into commodity investments risks stalling as rallies falter
Flows into commodity investments have hit their highest levels since the global financial crisis as negative interest rates boost the appeal of real assets, but they risk reversing as rallies falter in metals and oil. The threat of investors liquidating their commodity stakes has climbed in recent years as speculative funds have become dominant and longer-term investors increasingly shun the sector. Some $51-billion (U.S.) has moved into commodities investments in the first seven months of the year, the most since 2009, according to Barclays, which tracks the flows. Investors scrambled to take advantage of this year’s rebound in many markets after the 19-commodity Thomson Reuters/Core Commodity CRB Index had more than halved since 2011...............................................Full Article: Source
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