From Investment News:
Investors warm to commodities in search for return
As developed equity and bonds see volatility, advisers re-examine a disfavored asset class
Global uncertainty, coupled with the strength of the Chinese markets, is leading U.S. investors back into commodities.CRB core (CRY) 293.32
Investors put more money into commodities ETFs and ETNs in July than they have in any single month over the past two years, according to ETF.com., which provides research on exchange-traded funds and exchange-traded notes.
The lift came as Chinese markets — and, in many cases, the funds tracking them — notched their best gains since late 2012, raising hopes that the world's second-largest economy will support demand for the industrial metals used to manufacture cars, buildings and consumer electronics bought by the country's growing middle class.
The flows also come against a backdrop of volatility in the equity and bond markets of developed countries. For example, data released Wednesday showed that Italy fell into recession for the third time in six years while a conflict continues between Western countries and Russia over the war in Ukraine.
“A lot of people released capital from the fixed income space as well as the equity space, so the money has to go somewhere — it might be a hedge,” said Eduardo Ramos, founder of Freedom Advisory, based in Guaynabo, Puerto Rico....MORE
