Investments in raw materials in fashion again after several years of decline in demand in this sector , writes Financial Times, leading opinion leaders of the most successful hedge funds.
Analysts point out that ” smart investors ” more care risks on investments in equity markets , they are trying to limit the expense of investment in other asset classes , including commodities.
In 2013, the net outflow of funds from the raw record $ 50 billion , but this year the situation is changing , resumed cash inflow of commodity indices and funds . Estimated Citi, since the beginning of the year, net income amounted to nearly $ 6 billion
Raw index Dow Jones UBS jumped in 2014 by 9.4 %, while U.S. stock index Standard & Poor’s 500 rose only 1.8 %.
Citi analysts believe that investors again began to be taken seriously as a powerful tool raw portfolio diversification , since the first time in many years, the dynamics of commodity prices does not coincide with changes in the stock market or to fluctuations of the U.S. dollar. Degree of correlation between different types of assets has declined substantially over the past 12 months.
A similar conclusion about the correlation between the decrease in raw materials and stocks and made public this week by the UN report , although the organization believes the main factor reducing banks trading activities in commodities . In any case, this trend helps to restore the role of supply and demand in the market pricing of commodities , the report says.
As the news agency Bloomberg, as failure Barclays Plc, JPMorgan Chase & Co. and Morgan Stanley on the part of trade in raw materials , the prices of these goods have become less dependent on stock quotes . The correlation between U.S. stocks and markets corn, cattle meat and wheat in January decreased to less than 0.05 point compared to almost 0.3 points in 2008 , according to a report prepared by David Bikketti and Nicolas Maistre – members of the United Nations Conference on Trade and Development (UNCTAD).
” Now we go back to a situation where supply and demand will contribute to a more fair prices , and perhaps more accurate forecasts ,” – said in an interview with Bloomberg , chief strategist at Allendale Inc. Richard Nelson. According to him, for those who use futures as a hedge , ” it is very good news.”