Salient to Investors:
Hedge funds et al reduced net-long positions across 18 US futures and options last week to the lowest since June 19. Gold holdings reached a 4-month low, copper holding dropped for the first time in five weeks, and investors were the most bearish on natural gas since May.
Walter Hellwig at BB&T Wealth Mgmt says it’s easier to sit on the sidelines or go short because of the lack of sustained, healthy global growth.
Evan Smith at US Global Investors says increasing government and central bank stimulus measures will bolster commodity demand.
The median economist expects China to snap a 7-quarter slowdown as growth accelerates to 7.8 percent in Q4 2012 and keep accelerating for at least the next six months.
Chad Morganlander at Stifel Nicolaus said the Chinese slowdown has reversed and global growth expectations will slowly improve in Q2 and Q3 2013, ginning up commodity prices.
Cameron Brandt at EPFR Global said money managers withdrew $188 million from commodity funds last week and $451 million from gold and precious-metal funds.
Jack Ablin at BMO Private Bank said commodities are caught in a risk-asset slide.
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